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XFlow, a financial services and infrastructure company, has raised $10.2 million in a pre-Series A funding round led by Square Peg Capital, with participation from Moore Strategic Ventures and existing investors Lightspeed and General Catalyst.

The fresh funds will be used to expand XFlow’s product capabilities to support more currencies and local payment methods, as well as to grow the business in India.

In the works are plans to expand its team across key engineering, sales, marketing, and operational roles. It is also looking at operational expansion in geographies beyond India, the company said in a statement.

“XFlow is simplifying cross-border payments for Indian companies. We believe the founding team’s prior experience and focus on compliance, risk, product, and engineering positions them strongly,” said Bejul Somaia, Partner, Lightspeed.

So far, XFlow has raised a total of $16.2 million in funding. Earlier, the startup raised $6 million in a seed funding round led by Lightspeed, Stripe, and General Catalyst.

“XFlow has made it super simple for us, it handled our needs, volumes and edge cases quickly, seamlessly and compliantly,” said Anand Krishna, CEO and Founder of Inkle, a chat-based accountant product.

Founded by Anand Balaji and Ashwin Bhatnagar in 2021, XFlow makes cross-border payments easy for businesses of all sizes from freelancers to small and medium enterprises and large enterprises in a compliant and regulatory manner.

The startup currently works with Indian businesses such as Inkle, iCliniq, and WeWork India for international transactions.