Payment Solution Start-up PayGlocal Secures $4.9 Million from Sequoia Capital

PayGlocal, a payment solutions incubator, announced that it has secured $4.9 million in a Series A fundraising round headed by Sequoia Capital, with participation from BeeNext, Jitendra Gupta, and Amrish Rau.

The money will be used to scale the company's cross-border merchant payment solution and expand the staff, according to the company.

PayGlocal, which was founded in 2021 by ex-Visa executives Prachi Dharani, Rohit Sukhija, and Yogesh Lokhande, allows businesses to accept and collect payments from clients outside of India in their own currency and using their own credit and debit cards.

Prachi said, “Indian merchants are facing challenges in accepting payments from an exponentially growing global consumer base as the current payment solutions aren’t exactly designed to process their payments made via cards issued abroad”.

She underlined, “we knew that we had a huge opportunity to unlock cross-border growth for nearly every business owner out there if we could address this problem. So, we put together our years of experience working in the Indian financial ecosystem to develop PayGlocal”.

To accept international payments, the firm has worked with commercial and public sector banks. It stated that by March 2022, it intends to raise the size of its team by at least 50%.

PayGlocal currently accepts payments in over 100 different currencies.

Sequoia India's Managing Director, Ashish Agrawal said, "moving money across borders is still broken, especially if one of the endpoints is an emerging market such as India. We believe that Prachi, Rohit, and Yogesh are a great team attempting this problem given their past experience in payment processing”.

According to a PwC analysis, India is the largest worldwide market for inward remittance flow, at $83 billion, followed by China and Mexico. Since 2016, India's cross-border remittances have grown at an annual rate of 8%, owing to rising demand for Indian goods and services, more worldwide travel, and a huge workforce in foreign nations.

Fintechs have been developing novel technologies to make cross-border payments easier and safer. The RBI recently chosen Open Financial Tech, a blockchain-based cross-border payment system, as part of the second cohort of the regulatory sandbox.