Escrow Platform Castler Raises $5.5 Million in Pre-Series A Round with Flipkart as Key Investor
- ByStartupStory | September 27, 2023
Escrow banking platform Castler has successfully closed its pre-Series A funding round with a notable addition—Flipkart—as a new investor. This round has garnered a total of $5.5 million in investments, featuring contributions from various prominent backers, such as Capital 2B (an Info Edge Fund), IIFL Fintech Fund, Stride Ventures, Piper Serica, as well as existing investors including Zerodha, Venture Catalysts, 9Unicorns, and Faad Network.
Walmart-owned Flipkart has joined this group, directing $500,000 (approximately Rs 4.16 crore) from its $100 million venture fund, Flipkart Ventures. This strategic investment was made as part of Flipkart Leap Ahead, the company’s accelerator program.
Castler, founded in 2021 by Vineet Singh and Dinesh Kumar, offers escrow solutions to more than 500 enterprises, managing monthly transactions exceeding Rs 5,000 crore. The platform’s escrow banking stack addresses the evolving needs of businesses, encompassing complex transaction flows, identity verification, fraud management, and customer protection.
This infusion of capital will enable the New Delhi-based firm to fortify its expansion efforts, both in domestic and cross-border escrow services. Castler also plans to establish partnerships with more than 25 banks as part of its growth strategy.
Vineet Singh, Co-founder and CEO of Castler, expressed the significance of Flipkart Ventures’ involvement, highlighting it as a significant milestone for Castler’s position in the escrow banking industry. He emphasized the company’s readiness to execute and build a substantial business.
Lubna Ahmed, Head of Flipkart Ventures, underlined Flipkart’s dedication to fostering the Indian startup ecosystem. She expressed excitement about supporting Castler on its transformative journey, as it continues to drive innovation and growth in its sector.
Castler, already a partner to more than 200 startups and 150 NBFCs and LSPs, is poised to launch full-stack solutions for liquidation and RERA escrows through collaborations with multiple banks, IRPs, and NBFCs. As part of its expansion strategy, the firm has recently brought fintech expert Kumar Amit, formerly of Razorpay, on board as Co-founder and COO.
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