PUBG Developer Krafton Co-Leads $53 Million Funding Round In India’s Payments Startup Cashfree

Krafton develops the mega-hit PlayerUnknown’s Battlegrounds (PUBG) videogame.

SeongJoon Cho/Bloomberg

South Korean online gaming giant Krafton, controlled by billionaire Chang Byung-gyu, has co-led a 4.5 billion rupees ($53 million) financing round in Indian startup Cashfree Payments.

The Series C round is co-led by existing backer Apis Partners, a U.K. investment firm whose portfolio includes Tencent-backed fintech unicorn Tymebank in South Africa, Cashfree said in a statement on Wednesday. The round values the Bangalore-based startup at $700 million, according to a source familiar with the matter.

Krafton, which develops the mega-hit PlayerUnknown’s Battlegrounds (PUBG) videogame, said it decided to back Cashfree because it sees growing demand for payment systems tailored to India’s media and entertainment sector. “We believe Cashfree Payments’ dominant position in India can be replicated globally,” said Krafton India CEO Sohn Hyunil in the statement.

Krafton’s investment in Cashfree is part of its bets on India’s growing gaming industry. The game developer’s Battlegrounds Mobile India (BGMI) is one of India’s most popular mobile titles with more than 200 million downloads. After BGMI was approved by the Indian government to relaunch in 2023 following a months-long ban, Krafton has earmarked $150 million to invest in Indian gaming and entertainment companies. Along with previous commitments, Krafton has poured more than $170 million into Indian startups since 2021, including game studio Nautilus Mobile and esports company Nodwin Gaming.

Cashfree cofounder and CEO Akash Sinha.

Cashfree Payments

Founded in 2015, Cashfree helps merchants collect online payments and make payouts. The startup said it serves more than 800,000 businesses, processing $80 billion worth of transactions a year. It has attracted the likes of investors including Silicon Valley’s prominent startup accelerator Y Combinator, the State Bank of India, as well as Smilegate Investment, the venture capital arm of Korean billionaire Kwon Hyuk-bin’s gaming behemoth Smilegate.

Cashfree said it will use the fresh funds to enhance its payment offerings, including its new features that help merchants process cross-border payments and verify user identification. The company added that it will expand into the United Arab Emirates.

“This investment will help us accelerate our key efforts—across cross-border and security innovations and international expansion,” said Cashfree cofounder and CEO Akash Sinha in the statement. “We are focused on driving profitable growth as we scale.”

Krafton’s investment in Cashfree is also part of the Korean company’s move to diversify its revenue stream after years of dependence on PUBG. Last September, Krafton invested 120 billion won ($90 million) in Spoon Labs, a Seoul-based company that operates a short-form K-drama streaming platform.

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