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Cashfree in talks to raise $80-100 million at a flat valuation of about $700 million, with Krafton raising its stake
Cashfree Payments is in talks to raise $80-100 million through fresh funding and purchases of existing shares, with valuation likely unchanged from about $700 million. Krafton would increase its stake while Apis Partners sells most of its holding.
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The numbers
Figures from Mint,
| FY2025-26 revenue: | ₹972 crore |
|---|---|
| FY2025-26 revenue growth: | about 52% |
| FY2025-26 net loss: | ₹118 crore |
| UPI merchant discount rate: | 0.4% |
| MDR cap per transaction: | ₹300 |
| MDR applies to UPI merchant payments above: | ₹2,000 |
Why it matters to operators and investors
Krafton raising its stake while Apis Partners sells most of its holding shows the Cashfree cap table being reshaped at a flat $700 million valuation, which gives a pricing benchmark for Indian payments assets, though the 0.4% UPI MDR from 15 October could shift unit economics.
What to watch next
- Final announcement or regulatory filings confirming round size inside the $80-100 million range
- Disclosure of Apis Partners' remaining stake and Krafton's post-deal holding
- Any valuation figure that departs from about $700 million
- Changes to Cashfree's merchant pricing after the 15 October UPI MDR start
- Next reported results showing the ₹118 crore net loss narrowing or widening
Likely next moves
Our read of what comes next — analysis, not reported by the source.
- Krafton is likely to finish as the largest outside backer of Cashfree, combining fresh capital with purchases of existing shares to raise its stake.
- Apis Partners is likely to sell most of its holding in the secondary leg, largely ending its role as a significant shareholder.
- Cashfree is likely to use the new capital to push growth beyond the roughly 52% revenue gain, aiming to narrow the ₹118 crore net loss.
- Rival payment gateways may use the 0.4% UPI MDR, capped at ₹300, from 15 October to pitch merchants on pricing or bundled services against Cashfree.
- Cashfree is likely to revise merchant pricing or plans around the UPI MDR start date, rather than absorb the full charge.
The source
First seen