Skydo secures $5 Million in Funding from Elevation Capital to Accelerate Cross-Border Payment Solutions

In a major boost for the cross-border payment landscape, Skydo, the innovative startup dedicated to streamlining international transactions, has successfully raised $5 million in its latest equity round. The funding was spearheaded by Elevation Capital, with contributions from several prominent angel investors. This marks Skydo’s second significant equity infusion, following their initial $5 million raise in 2022 from the same lead investor.

Skydo's Ambitious Growth Plans

Skydo, which is currently awaiting the coveted payment aggregator cross-border licence from the Reserve Bank of India (RBI), is committed to transforming the cross-border payment experience for small businesses and freelancers in India. The startup aims to simplify the complex and often costly process of international transactions, providing a seamless platform for users to accept payments from over 100 countries in 32 currencies.

Srivatsan Sridhar, CEO of Skydo, shared the company’s future aspirations: “Our ultimate goal is to extend our services to include payouts from India and cater to larger enterprises with comprehensive cross-border payment solutions.” Sridhar highlighted the company’s ongoing evaluation of applying for the payment aggregator licence, which would enable them to offer domestic merchant payment services, further expanding their product suite.

Enhancing Cross-Border Payments

Skydo's platform addresses the challenges of cross-border payments, which are notoriously expensive and complex due to the involvement of multiple jurisdictions. The startup offers a sophisticated dashboard that allows businesses to monitor their transactions across geographies and identify savings on hidden fees. This transparency and efficiency are pivotal in a sector where tracking and managing costs can be particularly daunting.

With an impressive annual total payment volume (TPV) run rate of approximately $120 million, Skydo is making significant strides. The platform currently supports around 6,000 businesses, with one-third actively engaging with the service each month. The recent funding aims to propel Skydo towards an ambitious goal: a fivefold increase in TPV by the end of the financial year.

Backed by Industry Leaders

Skydo was founded in 2022 by Movin Jain, a former senior executive at PhonePe, and Sridharan Srivatsa, who previously worked with gold loan startup Rupeek. The startup's impressive trajectory and strategic vision have garnered strong support from industry experts.

Mridul Arora, partner at Elevation Capital, commended Skydo for its rigorous focus on governance and compliance. He noted, “Skydo’s commitment to high standards and its strong product offering position it to capture a significant share of the international payments market in India once it secures the RBI’s cross-border payments licence.”

With the infusion of fresh capital and a clear strategic direction, Skydo is poised to make substantial advancements in the cross-border payment sector. The company’s innovative approach and dedication to solving the complexities of international transactions set it apart as a key player in the evolving financial technology landscape.

As Skydo prepares to expand its services and enhance its platform, the future of cross-border payments in India looks brighter than ever. Stay tuned for more updates on this dynamic startup as it continues to revolutionize the way businesses and freelancers manage their global transactions.