Hustler Words – India’s consumer fintech sector has exploded, but corporate banking remains stuck in the past. This stark contrast presents a massive opportunity, and TransBnk, a three-year-old startup, is seizing it. The Mumbai-based company just secured a $25 million Series B funding round led by Bessemer Venture Partners, aiming to modernize India’s antiquated corporate banking infrastructure.
The past decade has witnessed a digital banking revolution in India, fueled by initiatives like the Unified Payments Interface (UPI). However, this progress hasn’t extended to corporate banking, which still relies heavily on manual processes, paper trails, and cumbersome spreadsheets. Businesses grapple with multiple banking portals and struggle with reconciliation. This inefficiency is particularly striking given India’s massive SME market—nearly 75 million businesses—all of whom could benefit from streamlined financial solutions.
This untapped potential is enormous. Chiratae Ventures and The Digital Fifth project India’s B2B fintech market to reach $20 billion by 2030. While India boasts 26 fintech unicorns, most focus on payments and lending, leaving a significant gap in core banking infrastructure.
Related Post
TransBnk, co-founded by former bankers, offers a "common operating system" – a single platform integrating with multiple banks. This microservices-based solution streamlines treasury, liquidity, and escrow management. Co-founder and CEO Vaibhav Tambe explains, "We saw a need for a consolidated platform, and we built it, integrating with multiple banks to offer a single interface—web, mobile app, or APIs."
Currently supporting 60 banks (40 fully integrated), TransBnk serves 220 clients, 80% of whom are merchants, fintechs, and NBFCs. The remaining 20% are banks white-labeling TransBnk’s software. This contrasts sharply with the global landscape where established players like Finastra and Temenos dominate. India’s market, however, remains relatively underserved by such solutions.
TransBnk’s success is undeniable. Revenue has grown more than 12x in the past year, reaching approximately $12 million in annual recurring revenue. The company achieved profitability in February, boasting healthy 80% gross margins, processing 110 million transactions monthly across 11,000 bank accounts using over 1,500 APIs.
The Series B round, including $4 million in secondary funding, also involved Fundamentum, Arkam Ventures, 8i Ventures, Accion, and GMO Venture Partners. TransBnk plans to expand beyond India into Southeast Asia and the Middle East, targeting sectors like real estate, pharma, and renewable energy. With this latest funding, TransBnk’s total funding reaches approximately $26 million, representing a 7x valuation increase from the previous round. The company’s innovative approach is poised to revolutionize corporate banking in India and beyond.
Leave a Comment