PayPal Meets UPI, KreditBee’s Public Dreams, and Auxano Capital Scores

The recent decision by PayPal to include India's UPI in its worldwide payment system isn't just a new partnership. It shows that India has become a key player in the global competition for cross-border payments. For years, Indian users have sent money out and brought money in using platforms like PayPal, Wise, Western Union, or through slow-moving bank rails. But this time, it’s different. With UPI now plugged directly into PayPal’s global checkout network, Indians can soon shop from 35 million international merchants using something as native as a UPI QR or a mobile tap.

India is the largest inbound remittance market in the world, pulling in over $135 billion in FY25, up from $129 billion last year. And while outward flows are much smaller - about $29.5 billion in FY25 under the Liberalised Remittance Scheme - they’re growing. Outbound tuition remittances alone rose 16% year-on-year. Statista projects outbound digital remittances will double to $33.5 billion by 2030.

India matters globally. But until now, the “cost of being Indian” in global payments has been high. Traditional bank remittances charge ~$55 to send $1,000. FX spreads add another 5-7% to SME export costs. PayPal, with mid-market rates and UPI rails, is promising to compress that to around 1.5%. That could save Indian shoppers and exporters over $150 million annually.

But what’s in it for PayPal? One word: volume.

PayPal already moves over $18 billion in India-linked flows, roughly 11% of the Cross Border Payment (CBP) market. But India’s user base is still relatively under-monetized. Credit card penetration is low. And banks, generally, don’t always play nice with fintechs. UPI, on the other hand, is trusted, fast, and universal. By adding a UPI button to global checkouts, PayPal bypasses banks and taps into the same network that processed 13 billion monthly domestic transactions in India. It’s like adding a rocket booster to user adoption, at almost no marginal cost.

And then there’s scale. NPCI wants to take UPI to 20 countries by 2029 and reach 100 million overseas users. Countries like France, UAE, and Singapore are already seeing fast merchant adoption. Add to that Project Nexus, a multilateral payment protocol aiming for sub-60-second global transactions, and you get a blueprint for how India can lead in global retail payments.

Of course, this move also intensifies competition.

Players like RazorpayX, Thunes, PayMate, and OpenFX are building FX APIs, cross-border cards, and invoice settlement tools. Platforms like Zolve and Aspora are targeting NRIs and freelancers. But PayPal’s scale, brand trust, and now UPI-native integration give it an unfair advantage.

But, there are challenges too.

India’s capital controls cap outbound transfers at $250,000 per resident annually. Compliance is tough - new PA-CB (Payment Aggregator - Cross Border) licenses require over 20 tech controls. The 20% TCS on Liberalised Remittance Scheme (LRS) transfers still slows adoption, although it may be rolled back. New AI systems are changing how banks handle money and decide on loans. The RBI needs to make sure these systems are safe, but also allow for new technologies to keep growing.

Still, the opportunity is too big to ignore.

Micro exporters, freelancers, NRIs, student families - all of them want cheaper, faster, and simpler global payment options. With PayPal and UPI working together, India might finally have a seamless cross-border rail that’s as good as what’s used in the West.

Let’s go through what else is happening in Indian startup world - Grab your simmering cup of StartupChai.in and unwind with our hand-brewed memes.

“Maidaan-E-Jung Ki Tayyari”: KreditBee Gets Board Nod To Convert Into Public Entity

KreditBee is buzzing with big plans, the fintech lender just got board approval to go public. A special resolution passed on June 27 now clears the way for its transition into a public limited company.

Competing with Avance and Aye Finance, KreditBee’s move signals a serious play for scale in India’s crowded credit game.

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“Ash Toh Kar, Yara Ash Toh Kar”: Auxano Capital Scores 7X Return From WIOM Exit

Auxano Capital just pulled off a win - bagging a 7X return from its exit in WIOM via a pre-fund SPV.

The 2022 seed bet has now turned into one of Auxano’s strongest exits, with this being its second full cash-out so far. Not bad for a VC that wasn’t even running its first official fund back then.

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“Soch Samajh Ke Nirnay Lo”: Delhi Govt Extends EV Policy Till March Next Year

Delhi’s EV dreams just got a longer runway, the government has extended its current electric vehicle policy till March 2026.

The move buys time for public consultations and ironing out the upcoming EV Policy 2.0. For now, it’s green lights ahead for cleaner commutes in the capital.

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1. SUGAR Cosmetics has sweetened its war chest with a ₹41 Cr fundraise from Anicut Capital, Stride Ventures, and L Catterton. The round includes ₹15 Cr in debt, giving the beauty brand a fresh gloss for its growth plans.
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2. Chatbot player Gupshup has secured $60 Mn in equity and debt from Globespan and EvolutionX to boost its conversational AI game. The funds will fuel both tech upgrades and deeper expansion into emerging markets.
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3. Veranda Learning has raised ₹357 Cr via its maiden QIP, attracting a mix of domestic and global institutional investors. The edtech firm issued over 1.58 Cr equity shares to fuel its next phase of growth across the learning value chain.
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4. iTuring.ai has raised $5M in a Series A round led by Dallas Venture Capital and Mela Ventures to sharpen its autonomous AI tools for the BFSI sector. The funds will boost product development and team expansion, especially in the US.
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5. Agentic AI startup Composio has secured $25M in Series A funding led by Lightspeed, with backing from top tech names like Vercel’s CEO and HubSpot’s Dharmesh Shah. The raise pushes its total funding to $29M, powering its mission to simplify software integration through AI agents.
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