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Escrow banking platform Castler closed its ongoing pre-Series A round with a new investor—Flipkart—on board. 

With this, Castler has secured a total of $5.5 million from investors, including Capital 2B (an Info Edge Fund) and IIFL Fintech Fund. The round also saw participation from Stride Ventures, Piper Serica, and existing investors Zerodha, Venture Catalysts, 9Unicorns, and Faad Network.

Walmart-owned Flipkart has invested in four early-stage startups, including Castler, where it pumped $500,000 (Rs 4.16 crore) through its $100 million venture fund, Flipkart Ventures. The investment made was part of Flipkart Leap Ahead, the company’s accelerator programme. 

Founded in 2021 by Vineet Singh and Dinesh Kumar, Castler claims to provide escrow solutions to over 500 enterprises, handling monthly transactions exceeding Rs 5,000 crore. Its escrow banking stack tackles evolving business models, complex transaction flows, identity verification, fraud management, and customer protection.

The investment will enable the New Delhi-based firm to bolster its expansion strategy for both domestic and cross-border escrow services and establish partnerships with over 25 banks, the company said in a statement. 

“Having Flipkart Ventures as an investor is a noteworthy accomplishment that underscores Castler’s strong performance and cements our pole position in the escrow banking industry. We have everything in place now to execute and build a large business,” said Vineet Singh, Co-founder and CEO of Castler.

Lubna Ahmed, Head of Flipkart Ventures, added, “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. We are pleased to invest in Castler as it continues to fuel innovation and growth in its industry.”

Partner for over 200 startups and 150 NBFCs and LSPs, Castler is now launching full-stack solutions for liquidation and RERA escrows in partnership with multiple banks, IRPs and NBFCs.

On its growth plans, the firm has recently appointed fintech veteran Kumar Amit, ex-Razorpay, as co-founder and COO.