Castler Bags $5.5 Mn Funding To Build Global Escrow Platform

Escrow banking startup Castler has closed its Pre-Series A funding round at $5.5 Mn. The funding round was led by Capital 2B (an Info Edge Fund) and IIFL Fintech Fund. 

It must be noted that the startup announced raising $5 Mn in the round in May this year. Now, it has announced the closure of the round with an additional investment of $500,000 by Flipkart Ventures.

On Monday, Inc42 reported that Flipkart Ventures has backed five early stage startups, including Castler, as part of its accelerator programme, Flipkart Leap Ahead.

With the fresh funds, Castler aims to bolster its expansion strategy for both domestic and cross-border escrow services and establish partnerships with over 25 banks, targeting substantial growth in the coming years. 

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

Castler claims to have served 500 businesses so far with monthly transactions exceeding INR 5,000 Cr. Currently, the startup has partnered with more than 200 startups and 150 NBFCs and ​​LSPs (lending service providers) to provide escrow solutions.

Commenting on the investment, Lubna Ahmed, Head of Flipkart Ventures, said, “Flipkart has always been at the forefront of empowering the startup ecosystem in India. We are excited to witness the transformative journey of startups in India as they harness Flipkart’s resources and guidance to bring their innovative ideas to life.”

In May, the escrow banking platform raised $5 Mn to invest in both global and domestic expansion on the pillars of good governance and responsible execution. In India, the startup competes with the likes of Razorpay, Escrowpay and Cashfree Payments, among others.

The Indian fintech industry is estimated to rise to $2.1 Tn by 2030, growing at a compound annual growth rate (CAGR) of 18% from 2022. According to Inc42’s State Of Indian Fintech Report Q2 2023, the industry has secured $26 Bn in funding since 2014 which has given rise to 22 unicorns, with 33 soonicorns in the queue.

Update: The story and the headline of the copy have been edited to reflect the revised statement issued by the startup which changed the funding amount to $5.5 Mn from $6 Mn earlier.