BENGALURU: Payments and banking solutions provider, Cashfree Payments has invested nearly $15 million in the UAE and Saudi Arabia-based payment service provider, Telr, as it seeks to expand its product offering in international markets.
Post the investment, Cashfree will become Telr's largest individual shareholder. The company refused to comment further on its shareholding in Telr.
Through the investment, Cashfree will look to offer its Indian product offerings such as instant payments, subscription payments and verification of commercial payments to Telr customers in the Middle East and North Africa (MENA) market.
The investment will also allow Cashfree merchants to accept payments from clients in the MENA region, as the company seeks to develop a unified cross-border payment platform with Telr.
Integration with Cashfree will also allow Telr to launch support for newer payment patterns for its merchants.
The current investment is part of Cashfree's broader plans to expand into new international geographies in the coming months. The Bengaluru-based startup is looking to set foot in the Southeast Asian and African markets, as well as the Middle East, over the next year, according to Cashfree co-founder and CEO Akash Sinha.
The company will largely follow an inorganic path, be it acquisitions, investments or partnerships to expand into these international geographies, Sinha told B2B in an interview. The co-founder added that the company will look to make at least 2-3 acquisitions over the next 12 months.
" The investment in Telr allows us to expand into a new market, while helping us launch our Indian products in the MENA region. It also allows our merchants to go global, as the integration will allow them to accept and disburse payments to customers in the Middle East. through our platform. Due to its popularity in the region, Telr will continue to be the front-line brand with Cashfree products now offered for its brand base, "said Sinha on the acquisition.
Cashfree currently processes $ 20 billion in transactions annually on its platform and has more than 100,000 businesses using its payment gateway for collections, vendor payments, salary payments, wholesale reimbursements, and expense reimbursement.
The seven-year-old Telr is a payment gateway that allows you to process payments in more than 120 currencies and 30 languages. It currently offers its merchants access to various payment methods, including Visa, Mastercard, American Express, UnionPay, Apple Pay, PayPal, SADAD, Mada, and STCPay.
It also provides merchants with world-class e-commerce solutions including helping them implement Buy Now Pay Later (BNPL) services, offering business loans through Telr Finance, and offering Telr Shops, to help them set up an online store.
"We are excited about this new investment in Telr. Joining forces with Cashfree Payments will allow us to continue our journey of innovation and growth. Our offerings and partnerships aim to help achieve an integrated e-commerce ecosystem that supports the UAE in its transition to a cashless economy. In short, this joint effort will translate into greater benefits for our customers and the markets in which we operate, " said Khalil Alami, chief executive officer and founder, Telr.
Over the next two fiscal years, Cashfree expects approximately 10% of its total revenue to come from international markets.
The company is also seeking acquisitions in its local market as it seeks to boost its product game in the new banking and payments space.
The company is in the final stages of launching 30-60 day business loans with ticket volumes up to â‚¹50 lakh on its platform, in association with financial partners.
It is also looking to launch its new banking platform for new banks, allowing them to quickly partner with Indian banks and launch coordinated offers for merchants and customers.
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