Castler Gets IFSCA Nod For Global And Cross-Border Financial Service Offerings

SUMMARY

Castler has received in-principle approval from the International Financial Services Centres Authority (IFSCA) to provide global escrow and cross-border money transfer services

The company said in a statement that the move will enable it to bridge the gap in secure, efficient and seamless financial transactions, crucial for international trade

This will also allow Castler to launch a global platform, leveraging its partner bank ecosystem at GIFT City to provide efficient escrow and cross-border money transfer solutions

Escrow banking startup Castler has received an in-principle nod from the International Financial Services Centres Authority (IFSCA) to offer global escrow and cross-border money transfer services.

The company said in a statement that the move will enable it to bridge the gap in secure, efficient and seamless financial transactions, crucial for international trade.

This will also allow Castler to launch a global platform, leveraging its partner bank ecosystem at GIFT City to provide efficient escrow and cross-border money transfer solutions.

According to Vineet Singh, founder & CEO of Castler, “This regulatory nod sets a new standard for the industry, fostering trust and reliability in international financial transactions.”

“The approval reiterates India’s potential to nurture fintech innovation, enabling companies like Castler to operate on a global scale without requiring overseas operations. As Castler prepares to launch its global platform, it remains committed to providing secure, efficient, and seamless escrow services to businesses worldwide,” he added.

Launched in 2021 by Singh, Dinesh Kumar, Kumar Amit Sinha, and Ritesh Tiwari, the startup offers escrow solutions, such as tackling complex transaction flows, identity verification, fraud management and customer protection.

The fintech SaaS startup has a subscription-based revenue model and caters to various industry segments such as logistics, retail, real estate, fintech and more. It has partnered with nine leading banks to help customers operate escrow accounts. Castler also raised $7 Mn from marquee investors, including Venture Catalysts++, Flipkart Ventures, Capital 2B (an Info Edge fund) and IIFL Fintech Fund, Zerodha’s Rainmatter, 9Unicorns among others.

The company claims to manage over INR 10,000 Cr in monthly transactions and partners with 12 banks to offer a comprehensive suite of escrow services.

According to Inc42 data, India is home to over 24 fintech unicorns and 36 soonicorns. These startups are trying to grab a pie of the country’s fast-growing fintech market which is expected to become a $2.1 Tn opportunity by 2030.