Dodo Payments secures $1.1M pre-seed for cross-border growth

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Dodo Payments, a Bengaluru-based fintech startup, has raised $1.1 million in a pre-seed funding round led by Antler, 9Unicorns, and Venture Catalysts. Several angel investors, including Nitin Gupta (Uni Cards, PayU), Maninder Gulati (former Oyo CSO/Lightspeed), Raymond Russell (former Chief of Staff at Boom Supersonic), Preethi Kasireddy (former Partner at a16z), and Nishant Verman (former Flipkart CorpDev head), participated in the round. Founded in 2023 by Rishabh Goel and Ayush Agarwal, Dodo Payments aims to simplify cross-border transactions by offering merchants access to over 150 countries with success rates exceeding 90%.

The company will utilize the funding to enhance its technological infrastructure, improve security and compliance, and establish local payment rails in over 30 countries, including regions such as the European Union, United Kingdom, Southeast Asia, Middle East, Brazil, and Australia. The platform currently supports over 25 local payment methods, including Apple Pay, Klarna, Affirm, Cash App, UPI, and all major card networks. With a commitment to revolutionizing global transactions for businesses in emerging markets, Dodo Payments plans to expand its merchant network to over 10,000 businesses by the end of the year.

1. Dodo Payments’ Business Model and Revenue Generation

1.1 How Dodo Payments Works

Dodo Payments functions as a Merchant of Record (MoR) platform, enabling digital-first businesses to process cross-border payments without facing regulatory hurdles, compliance challenges, and transaction failures. The startup provides a seamless and secure payment infrastructure, allowing businesses to accept international payments efficiently while ensuring high transaction success rates.

1.2 Revenue Model

The company primarily generates revenue through transaction fees, subscription-based services, and value-added offerings such as fraud detection, chargeback resolution, and compliance management. By integrating AI-driven solutions, Dodo Payments minimizes payment failures and optimizes conversions for merchants, leading to a competitive edge in the cross-border payments space.

1.3 Core Services and Offerings

Dodo Payments provides a range of services, including:

• Secure and compliant payment processing
• Local payment method integration
• Dynamic currency conversion
• AI-powered fraud detection and risk management
• Global tax and regulatory compliance solutions
• Merchant underwriting and chargeback mitigation

2. Funding Background and Investors

2.1 Funding Details

Dodo Payments’ $1.1 million pre-seed round was co-led by Antler, 9Unicorns, and Venture Catalysts. The investment will be used to scale operations, enhance product capabilities, and expand to new markets. The startup’s last funding round closed on July 1, 2024.

2.2 Notable Investors

Key angel investors include:

• Nitin Gupta (Uni Cards, PayU)
• Maninder Gulati (former Oyo CSO, Lightspeed)
• Raymond Russell (former Chief of Staff at Boom Supersonic)
• Preethi Kasireddy (former Partner at a16z)
• Nishant Verman (former Flipkart CorpDev head)

These investors bring industry expertise and strategic guidance to help Dodo Payments scale rapidly.

3. Dodo Payments’ Market Expansion Plans

3.1 Geographical Expansion

Dodo Payments aims to establish local payment rails in over 30 countries, targeting high-growth regions such as:

• European Union
• United Kingdom
• Southeast Asia
• Middle East
• Brazil
• Australia

3.2 Technological Advancements

The company plans to integrate new features, including enhanced fraud prevention, real-time settlement options, and improved risk management tools. Dodo Payments is also working toward obtaining key industry certifications, including PCI-DSS, SOC 2, GDPR, and ISO compliance.

3.3 Merchant Onboarding and Growth

Currently, Dodo Payments has onboarded over 1,000 merchants across 30 countries. The startup aims to increase this to more than 10,000 businesses globally by the end of the year, ensuring a seamless payment experience for digital merchants worldwide.

4. Industry Insights and Market Trends

4.1 Cross-Border Payments Landscape

The global cross-border payments market is expected to grow significantly, driven by increasing e-commerce penetration, digital transformation, and demand for seamless international transactions. The rise of AI-powered financial solutions has enhanced payment security, reduced transaction costs, and improved user experience.

4.2 Competitive Landscape

Dodo Payments competes with established players such as Stripe, Adyen, and Payoneer. However, its AI-driven approach, localized payment support, and focus on emerging markets give it a strong differentiation strategy.

5. Learning for Startups and Entrepreneurs

5.1 Addressing Market Gaps

Startups should identify existing inefficiencies in their industry and create innovative solutions that enhance user experience and operational efficiency.

5.2 Leveraging Technology

AI-driven solutions can significantly improve transaction success rates, reduce fraud, and ensure compliance, making them essential for fintech startups.

5.3 Strategic Fundraising

Raising capital from the right investors can provide not just funding but also strategic mentorship and industry connections.

5.4 Global Expansion Planning

Startups planning international growth should focus on regulatory compliance, localization strategies, and partnerships with key stakeholders.

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