Indian payments startup Cashfree has raised $53 million in a new round of funding, valuing the company at $700 million, as it gears up to expand its presence in international markets, particularly in the Middle East. The funding round was led by Krafton, the maker of popular gaming titles such as PUBG and BGMI, alongside existing investor Apis Growth Fund.

The deal marks an unusual partnership between a gaming company and a payments startup, but both firms see strategic value in the collaboration. According to Sean Hyunil Sohn, who heads Krafton's India business, the gaming giant is betting on India's evolving media and entertainment sector, where robust payment systems have become crucial for enhancing user experience.

Cashfree, which serves over 800,000 businesses, including prominent names such as Swiggy, Zepto, and Bajaj Finance, has seen merchant sign-ups surge 130% in the current fiscal year. The Bangalore-based startup is particularly focused on expanding in the UAE and other Middle Eastern markets, where its technology stack allows businesses to process up to 12,000 transactions per second during peak demand.

Cashfree's technology stack has also developed SecureID, an identity verification system that has performed over a billion verifications to date, helping businesses combat fraud while reducing customer drop-offs during onboarding. The startup is one of the first companies to receive authorization from India's central bank to operate as a payment aggregator for both domestic and international transactions.

Cashfree's impressive growth and expansion plans are a testament to the growing demand for robust payment systems in India and beyond. The startup, which was incubated by PayPal, counts Y Combinator and State Bank of India among its earlier backers. With this new funding, Cashfree is well-positioned to deepen its presence in international markets and further establish itself as a leading player in the payments space.

The deal also highlights the growing interest of gaming companies in the payments space, as they seek to enhance user experience and reduce friction in online transactions. As the digital payments landscape continues to evolve, it will be interesting to see how this partnership between Cashfree and Krafton plays out, and what other gaming companies may follow suit.

With this new funding, Cashfree is poised to make a significant impact in the payments space, both in India and beyond. As the company continues to expand its presence in international markets, it will be important to watch how its technology stack and SecureID system are adopted by businesses and consumers alike.