Xflow got Stripe + PayPal backing: What it means for you
If you freelance for global clients from India, you already know the pain. Your $3,000 invoice arrives as $2,790 in your bank account. The missing $210 vanished into forex markups, platform fees, and processing charges you never agreed to. Multiply that by twelve months, and you lose over $2,500 a year to move your own money across borders.
That pain point just got a powerful new enemy. Xflow, a Bengaluru-based cross-border payments platform, raised $16.6 million in a Series A round backed by both Stripe and PayPal Ventures. The round values the three-year-old startup at $85 million and signals a serious shift in how international money reaches Indian freelancers. General Catalyst led the round with participation from Square Peg, Lightspeed, and Moore Capital.
India is home to more than 15 million freelancers. That is the second-largest freelance workforce on the planet. Yet the payment infrastructure serving these professionals has barely changed in a decade. Two of the world's biggest payment companies just said that they need to change.
Here is what this funding means for your next invoice.
What Xflow actually does
Xflow is an API-driven payments platform that helps Indian businesses and freelancers collect international payments. You get a virtual multi-currency account that accepts payments in over 25 currencies from more than 100 countries. The money then settles into your Indian bank account by noon the next business day.
The platform was founded in 2021 by three former Stripe executives. CEO Anand Balaji built Stripe's entire India business between 2016 and 2021 before starting Xflow. His co-founders, Ashwin Bhatnagar and Abhijit Chandrasekaran, also come from Stripe's product and engineering teams.
Their core promise is simple. You receive the mid-market exchange rate with zero forex markup. The platform charges a flat fee or a small percentage, depending on the size of your invoice. For a $3,000 freelance payment, the total cost works out to roughly $18 on their Starter plan. Larger invoices on the Growth plan cost even less as a percentage.
Compare that to PayPal's roughly $210 in combined fees on the same amount, or Payoneer's $60 to $90 after their forex markup and withdrawal charges. The difference adds up fast when you bill international clients every single month.
Xflow processes transactions through JP Morgan Chase and holds ISO 27001 and SOC 2 certifications. It also generates free e-FIRA documents within 24 hours of every withdrawal. That matters because Indian freelancers need FIRA documentation for tax filings, GST claims, and audits.
Why Stripe and PayPal both backed the same startup
Stripe and PayPal rarely invest in the same company. They compete directly in the global payments infrastructure space. Yet both chose to back Xflow in this round, led by General Catalyst at an $85 million valuation.
Stripe has been involved since Xflow's $6 million seed round in October 2021. The connection makes sense given the founders' deep background at Stripe. PayPal Ventures joined the Series A round, bringing the total funding to approximately $32.8 million across three rounds.
The reason both giants see opportunity here comes down to India's cross-border payment gap. India received a record $135 billion in inward remittances during FY2024-25. That is a 14 per cent year-on-year rise, the highest figure among all countries in the world. More than double what Mexico received in the same period.
A growing share of this money now comes from skilled professionals in the US, UK, Canada, and Singapore. The RBI's latest remittance survey confirms this shift. For the first time, remittances from advanced economies have overtaken transfers from the Gulf Cooperation Council. This is precisely the segment where freelancers operate.
India also has more than 15 million freelancers. That makes it the second-largest freelance workforce globally after the United States. The government's Economic Survey 2025-26 projects 23.5 million gig workers by 2029-30. Each of these freelancers needs a reliable, affordable way to collect international payments.
Yet most Indian freelancers still lose 3 to 7 per cent of every payment to hidden fees. Legacy banks charge $15 to $30 per SWIFT transfer, plus forex markups of 1 to 3 per cent. Popular platforms like PayPal charge 4.4 per cent in transaction fees, plus an additional 3 to 4 per cent in currency conversion charges.
Xflow's pitch to investors is that it can capture this massive gap between what freelancers earn and what they actually receive.
The RBI license that changes everything
Alongside the funding announcement, Xflow revealed that it had secured the final Payment Aggregator-Cross Border authorisation from the Reserve Bank of India. This PA-CB license covers both exports and imports. Very few Indian fintechs hold both authorisations.
This license matters more than it might seem. Before the PA-CB framework, cross-border fintechs operated in a regulatory grey area. Banks were the only fully authorised channel for international payments. The RBI's PA-CB license now gives Xflow the same regulatory standing as traditional banking channels for handling cross-border transactions.
For freelancers, this means your payments through Xflow carry the same regulatory protection as a direct bank transfer. You get proper documentation, clear audit trails, and full compliance with FEMA regulations. The platform automatically handles RBI purpose code classification.
If you want to understand the full landscape of options available to you, this guide on the best ways to receive international payments in India breaks down every major method and its true cost.
Software and IT services fall under P0802. Consulting goes under P0807. Design, marketing, and other creative services have their own codes. You do not need to figure this out yourself.
The import license also opens up new possibilities. Xflow plans to launch outward remittance capabilities, which could let freelancers pay for international tools, subscriptions, and services through the same platform they use to receive payments.
If you want to understand the full landscape of options available to you, this guide on the best ways to receive international payments in India breaks down every major method and its true cost.
How Xflow compares to other platforms on fees
The numbers tell the story clearly. Here is what you actually pay on a typical $3,000 freelance invoice across the major platforms.
Xflow charges approximately $18 on its Starter plan. It applies the mid-market exchange rate with zero markup. Your $3,000 arrives as roughly $2,982 equivalent in your Indian bank account.
Wise charges around $48 to $57 for the same transfer. It also uses the mid-market rate but applies a 1.6 to 1.9 per cent fee on the transaction. You receive about $2,943 to $2,952.
Payoneer charges $60 to $9, a combination of a 2 to 3 per cent forex markup and withdrawal fees. Your $3,000 becomes roughly $2,910 to $2,940.
PayPal is the most expensive option for Indian freelancers. The 4.4 per cent transaction fee plus a 3 to 4 per cent currency conversion markup means you lose about $210 on every $3,000 invoice. You receive approximately $2,790. Many freelancers default to PayPal because clients find it easy to use. But that convenience comes at a steep cost that compounds month after month.
For a freelancer billing $5,000 per month, switching from PayPal to Xflow saves over $2,300 per year. Even switching from Payoneer to Xflow saves $500 to $860 annually. That is real money that stays in your pocket instead of disappearing into platform fees. Over a five-year freelance career, those savings could add up to $10,000 or more.
Settlement speed also differs significantly. Xflow settles funds by noon the next business day. Wise takes one to two business days. Payoneer needs two to five business days for a withdrawal to an Indian account. Traditional SWIFT transfers through banks can take three to five business days.
When evaluating which platform works best for your situation, comparing top Wise alternatives for international payments can help you see the full picture beyond just fees.
What this funding means for your freelance business
The $16.6 million in fresh capital means Xflow will scale its infrastructure and likely improve its product for freelancers in several concrete ways.
First, expect better pricing as volumes grow. Xflow already processes nearly $1 billion in annualised cross-border volume across nearly 15,000 businesses. The company achieved 10x growth in both revenue and volume during 2025. More volume means better rates from banking partners, and the company has a track record of passing savings on to users through competitive pricing tiers.
Second, the import license opens up two-way payment flows. Freelancers who pay for Adobe Creative Cloud, GitHub, AWS hosting, or other international tools could eventually manage both incoming and outgoing payments from a single platform. This eliminates the need to maintain separate accounts for receiving and sending money internationally.
Third, Xflow plans to expand internationally. The company already holds a payments license in Canada and is pursuing licenses in Singapore, Europe, and the Middle East. This means freelancers working with clients across multiple regions could receive payments through local rails rather than expensive international wires. Local payment rails typically settle faster and cost less than SWIFT transfers.
Fourth, the AI-powered forex tools will get smarter. Xflow offers an AI FX Analyst that provides three-day exchange rate forecasts with approximately 92 per cent confidence. The tool helps freelancers time their currency conversions to capture an average of 8-10 paise per dollar. With more funding, expect these tools to become more accurate and feature-rich.
The partnership with Zoho Books for integrated accounting adds another layer of convenience. Freelancers can manage invoicing, payment collection, currency conversion, and bookkeeping in a connected workflow, rather than juggling separate tools.
How to evaluate if Xflow is right for you
Not every freelancer needs to switch platforms immediately. Your decision depends on a few factors.
If you bill less than $500 per month, the fee savings might not justify the effort of changing your payment setup. Wise or even PayPal may work fine for very small amounts where convenience matters more than cost.
If you bill $2,000 or more per month from international clients, the math strongly favours Xflow. The savings on forex alone cover the cost of any initial setup hassle within the first month.
If you need FIRA documentation frequently for tax purposes, Xflow's automatic free e-FIRA within 24 hours is a clear advantage. Wise charges $2.50 per certificate. Payoneer takes up to 72 hours. PayPal only provides monthly FIRA on the 15th of the following month.
If your clients prefer to pay via specific methods, check compatibility first. Xflow supports ACH, RTP, and Fedwire for US clients. European clients can pay via SEPA. These cover the vast majority of B2B payment methods used by companies in the US, UK, and EU. If your clients are on platforms like Upwork or Fiverr, you may still need Payoneer for marketplace-integrated payments since Xflow focuses on direct client billing.
One practical tip is that your freelance services to overseas clients qualify as export of services under GST. This makes them zero-rated with a Letter of Undertaking filed on the GST portal. You do not pay GST on these earnings. But you must ensure your export proceeds arrive within 270 days of the invoice date to stay compliant with RBI regulations. There is no upper limit on how much you can receive as an inward remittance for business purposes.
The cross-border payments space in India is evolving rapidly. Stripe and PayPal backing Xflow is not just a funding headline. It validates the idea that Indian freelancers deserve the same fast, affordable payment infrastructure that global professionals in the US and Europe take for granted. Whether you choose Xflow or another modern platform, the days of losing 5 to 7 per cent of every invoice are finally ending.
Your earnings are yours. Make sure they stay that way.
Disclaimer: The information provided in this blog is for general informational purposes only and does not constitute financial or legal advice. Winvesta makes no representations or warranties about the accuracy or suitability of the content and recommends consulting a professional before making any financial decisions.
Get paid globally. Keep more of it.
No FX markups. No GST. Funds in 1 day.
If you freelance for global clients from India, you already know the pain. Your $3,000 invoice arrives as $2,790 in your bank account. The missing $210 vanished into forex markups, platform fees, and processing charges you never agreed to. Multiply that by twelve months, and you lose over $2,500 a year to move your own money across borders.
That pain point just got a powerful new enemy. Xflow, a Bengaluru-based cross-border payments platform, raised $16.6 million in a Series A round backed by both Stripe and PayPal Ventures. The round values the three-year-old startup at $85 million and signals a serious shift in how international money reaches Indian freelancers. General Catalyst led the round with participation from Square Peg, Lightspeed, and Moore Capital.
India is home to more than 15 million freelancers. That is the second-largest freelance workforce on the planet. Yet the payment infrastructure serving these professionals has barely changed in a decade. Two of the world's biggest payment companies just said that they need to change.
Here is what this funding means for your next invoice.
What Xflow actually does
Xflow is an API-driven payments platform that helps Indian businesses and freelancers collect international payments. You get a virtual multi-currency account that accepts payments in over 25 currencies from more than 100 countries. The money then settles into your Indian bank account by noon the next business day.
The platform was founded in 2021 by three former Stripe executives. CEO Anand Balaji built Stripe's entire India business between 2016 and 2021 before starting Xflow. His co-founders, Ashwin Bhatnagar and Abhijit Chandrasekaran, also come from Stripe's product and engineering teams.
Their core promise is simple. You receive the mid-market exchange rate with zero forex markup. The platform charges a flat fee or a small percentage, depending on the size of your invoice. For a $3,000 freelance payment, the total cost works out to roughly $18 on their Starter plan. Larger invoices on the Growth plan cost even less as a percentage.
Compare that to PayPal's roughly $210 in combined fees on the same amount, or Payoneer's $60 to $90 after their forex markup and withdrawal charges. The difference adds up fast when you bill international clients every single month.
Xflow processes transactions through JP Morgan Chase and holds ISO 27001 and SOC 2 certifications. It also generates free e-FIRA documents within 24 hours of every withdrawal. That matters because Indian freelancers need FIRA documentation for tax filings, GST claims, and audits.
Why Stripe and PayPal both backed the same startup
Stripe and PayPal rarely invest in the same company. They compete directly in the global payments infrastructure space. Yet both chose to back Xflow in this round, led by General Catalyst at an $85 million valuation.
Stripe has been involved since Xflow's $6 million seed round in October 2021. The connection makes sense given the founders' deep background at Stripe. PayPal Ventures joined the Series A round, bringing the total funding to approximately $32.8 million across three rounds.
The reason both giants see opportunity here comes down to India's cross-border payment gap. India received a record $135 billion in inward remittances during FY2024-25. That is a 14 per cent year-on-year rise, the highest figure among all countries in the world. More than double what Mexico received in the same period.
A growing share of this money now comes from skilled professionals in the US, UK, Canada, and Singapore. The RBI's latest remittance survey confirms this shift. For the first time, remittances from advanced economies have overtaken transfers from the Gulf Cooperation Council. This is precisely the segment where freelancers operate.
India also has more than 15 million freelancers. That makes it the second-largest freelance workforce globally after the United States. The government's Economic Survey 2025-26 projects 23.5 million gig workers by 2029-30. Each of these freelancers needs a reliable, affordable way to collect international payments.
Yet most Indian freelancers still lose 3 to 7 per cent of every payment to hidden fees. Legacy banks charge $15 to $30 per SWIFT transfer, plus forex markups of 1 to 3 per cent. Popular platforms like PayPal charge 4.4 per cent in transaction fees, plus an additional 3 to 4 per cent in currency conversion charges.
Xflow's pitch to investors is that it can capture this massive gap between what freelancers earn and what they actually receive.
The RBI license that changes everything
Alongside the funding announcement, Xflow revealed that it had secured the final Payment Aggregator-Cross Border authorisation from the Reserve Bank of India. This PA-CB license covers both exports and imports. Very few Indian fintechs hold both authorisations.
This license matters more than it might seem. Before the PA-CB framework, cross-border fintechs operated in a regulatory grey area. Banks were the only fully authorised channel for international payments. The RBI's PA-CB license now gives Xflow the same regulatory standing as traditional banking channels for handling cross-border transactions.
For freelancers, this means your payments through Xflow carry the same regulatory protection as a direct bank transfer. You get proper documentation, clear audit trails, and full compliance with FEMA regulations. The platform automatically handles RBI purpose code classification.
If you want to understand the full landscape of options available to you, this guide on the best ways to receive international payments in India breaks down every major method and its true cost.
Software and IT services fall under P0802. Consulting goes under P0807. Design, marketing, and other creative services have their own codes. You do not need to figure this out yourself.
The import license also opens up new possibilities. Xflow plans to launch outward remittance capabilities, which could let freelancers pay for international tools, subscriptions, and services through the same platform they use to receive payments.
If you want to understand the full landscape of options available to you, this guide on the best ways to receive international payments in India breaks down every major method and its true cost.
How Xflow compares to other platforms on fees
The numbers tell the story clearly. Here is what you actually pay on a typical $3,000 freelance invoice across the major platforms.
Xflow charges approximately $18 on its Starter plan. It applies the mid-market exchange rate with zero markup. Your $3,000 arrives as roughly $2,982 equivalent in your Indian bank account.
Wise charges around $48 to $57 for the same transfer. It also uses the mid-market rate but applies a 1.6 to 1.9 per cent fee on the transaction. You receive about $2,943 to $2,952.
Payoneer charges $60 to $9, a combination of a 2 to 3 per cent forex markup and withdrawal fees. Your $3,000 becomes roughly $2,910 to $2,940.
PayPal is the most expensive option for Indian freelancers. The 4.4 per cent transaction fee plus a 3 to 4 per cent currency conversion markup means you lose about $210 on every $3,000 invoice. You receive approximately $2,790. Many freelancers default to PayPal because clients find it easy to use. But that convenience comes at a steep cost that compounds month after month.
For a freelancer billing $5,000 per month, switching from PayPal to Xflow saves over $2,300 per year. Even switching from Payoneer to Xflow saves $500 to $860 annually. That is real money that stays in your pocket instead of disappearing into platform fees. Over a five-year freelance career, those savings could add up to $10,000 or more.
Settlement speed also differs significantly. Xflow settles funds by noon the next business day. Wise takes one to two business days. Payoneer needs two to five business days for a withdrawal to an Indian account. Traditional SWIFT transfers through banks can take three to five business days.
When evaluating which platform works best for your situation, comparing top Wise alternatives for international payments can help you see the full picture beyond just fees.
What this funding means for your freelance business
The $16.6 million in fresh capital means Xflow will scale its infrastructure and likely improve its product for freelancers in several concrete ways.
First, expect better pricing as volumes grow. Xflow already processes nearly $1 billion in annualised cross-border volume across nearly 15,000 businesses. The company achieved 10x growth in both revenue and volume during 2025. More volume means better rates from banking partners, and the company has a track record of passing savings on to users through competitive pricing tiers.
Second, the import license opens up two-way payment flows. Freelancers who pay for Adobe Creative Cloud, GitHub, AWS hosting, or other international tools could eventually manage both incoming and outgoing payments from a single platform. This eliminates the need to maintain separate accounts for receiving and sending money internationally.
Third, Xflow plans to expand internationally. The company already holds a payments license in Canada and is pursuing licenses in Singapore, Europe, and the Middle East. This means freelancers working with clients across multiple regions could receive payments through local rails rather than expensive international wires. Local payment rails typically settle faster and cost less than SWIFT transfers.
Fourth, the AI-powered forex tools will get smarter. Xflow offers an AI FX Analyst that provides three-day exchange rate forecasts with approximately 92 per cent confidence. The tool helps freelancers time their currency conversions to capture an average of 8-10 paise per dollar. With more funding, expect these tools to become more accurate and feature-rich.
The partnership with Zoho Books for integrated accounting adds another layer of convenience. Freelancers can manage invoicing, payment collection, currency conversion, and bookkeeping in a connected workflow, rather than juggling separate tools.
How to evaluate if Xflow is right for you
Not every freelancer needs to switch platforms immediately. Your decision depends on a few factors.
If you bill less than $500 per month, the fee savings might not justify the effort of changing your payment setup. Wise or even PayPal may work fine for very small amounts where convenience matters more than cost.
If you bill $2,000 or more per month from international clients, the math strongly favours Xflow. The savings on forex alone cover the cost of any initial setup hassle within the first month.
If you need FIRA documentation frequently for tax purposes, Xflow's automatic free e-FIRA within 24 hours is a clear advantage. Wise charges $2.50 per certificate. Payoneer takes up to 72 hours. PayPal only provides monthly FIRA on the 15th of the following month.
If your clients prefer to pay via specific methods, check compatibility first. Xflow supports ACH, RTP, and Fedwire for US clients. European clients can pay via SEPA. These cover the vast majority of B2B payment methods used by companies in the US, UK, and EU. If your clients are on platforms like Upwork or Fiverr, you may still need Payoneer for marketplace-integrated payments since Xflow focuses on direct client billing.
One practical tip is that your freelance services to overseas clients qualify as export of services under GST. This makes them zero-rated with a Letter of Undertaking filed on the GST portal. You do not pay GST on these earnings. But you must ensure your export proceeds arrive within 270 days of the invoice date to stay compliant with RBI regulations. There is no upper limit on how much you can receive as an inward remittance for business purposes.
The cross-border payments space in India is evolving rapidly. Stripe and PayPal backing Xflow is not just a funding headline. It validates the idea that Indian freelancers deserve the same fast, affordable payment infrastructure that global professionals in the US and Europe take for granted. Whether you choose Xflow or another modern platform, the days of losing 5 to 7 per cent of every invoice are finally ending.
Your earnings are yours. Make sure they stay that way.
Disclaimer: The information provided in this blog is for general informational purposes only and does not constitute financial or legal advice. Winvesta makes no representations or warranties about the accuracy or suitability of the content and recommends consulting a professional before making any financial decisions.
Get paid globally. Keep more of it.
No FX markups. No GST. Funds in 1 day.
