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TransBnk Secures $25M to Modernize India’s Corporate Banking Sector

India’s corporate banking sector has long lagged behind the rapid advancements seen in consumer fintech. Despite the country’s digital transformation in banking, many businesses still rely on outdated systems, cumbersome paper trails, and manual processes. In response to this challenge, Mumbai-based startup TransBnk has successfully raised $25 million in a Series B funding round led by Bessemer Venture Partners. This funding aims to accelerate the development of a more integrated banking platform for businesses.

Over the past decade, India has witnessed a significant surge in consumer fintech, largely driven by innovations such as the government-backed Unified Payments Interface (UPI) and the growth of payment aggregators. However, these advancements have not translated into improvements for corporate banking, where many businesses still face inefficiencies in transaction banking. Manual workflows for payments, collections, and account statements remain prevalent, forcing business customers to navigate multiple internet banking portals and rely on spreadsheets for financial reconciliation.

Despite being home to nearly 75 million small and medium enterprises (SMEs), the corporate banking infrastructure in India has not evolved to meet the needs of this vast market. The untapped potential in this sector presents a lucrative opportunity for fintech companies. According to a report by Chiratae Ventures and The Digital Fifth, India’s B2B fintech industry is projected to reach a market size of $20 billion by 2030. This projection underscores the significant room for growth and innovation within the corporate banking landscape.

TransBnk, co-founded by former bankers Vaibhav Tambe, Lavin Kotian, Pulak Jain, and Sachin Gupta, aims to fill this gap by offering what it describes as a “common operating system” for businesses. This platform provides a single point of access to the banking ecosystem, enabling companies to manage various banking functions through a consolidated interface. The foundational layer of microservices allows for the development of applications focused on treasury, liquidity, and escrow management.

In an interview, CEO Vaibhav Tambe explained that during their banking careers, they frequently encountered customers seeking a unified platform for transaction and corporate banking. This prompted the founders to tackle the challenge of integrating multiple banks into a single accessible platform, which can be utilized via a web interface, mobile app, SDKs, or APIs.

Since its inception in 2022, TransBnk has partnered with 60 banks, with 40 fully integrated into its platform to facilitate transactions, payments, and core functionality reconciliation. The startup currently serves 220 customers, with approximately 80% being merchants, including lenders, fintechs, and non-bank financial companies (NBFCs). The remaining 20% consists of banks that utilize TransBnk’s software to offer corporate banking services to their clients.

Globally, companies such as Finastra, Temenos, and Infosys’ Finacle are modernizing banking through innovative software platforms. In the U.S., firms like Treasury Prime provide embedded banking solutions for enterprise customers. However, in India, the number of startups focusing on core banking infrastructure remains limited, indicating a significant market opportunity for those willing to invest in this space.

Building a robust banking platform necessitates deep expertise in banking infrastructure, which includes integrating with legacy core banking systems and connecting them to enterprise resource planning (ERP) and treasury platforms. Establishing strong relationships with banks is also crucial for accessing and leveraging their data and workflows. This is particularly important in a country like India, where regulatory frameworks and banking practices can vary significantly across regions.

In the past year, TransBnk has reported impressive growth, with revenue increasing more than 12 times to approximately $12 million in annual recurring revenue. The company achieved profitability after taxes in February and boasts healthy gross margins of around 80%. Currently, TransBnk facilitates approximately 110 million transactions monthly, covering 11,000 bank accounts and utilizing over 1,500 APIs. This level of activity showcases the platform’s scalability and its growing acceptance among businesses in need of streamlined banking solutions.

The recent Series B funding round, which includes $4 million in secondary investments, also saw participation from other notable investors, including Fundamentum, Arkam Ventures, 8i Ventures, Accion, and Japan’s GMO Venture Partners. With this latest funding, TransBnk has raised a total of around $26 million, and its valuation has reportedly increased sevenfold since the last funding round, reflecting investor confidence in the startup’s vision and execution.

Looking ahead, TransBnk plans to expand its operations beyond India, targeting markets in Southeast Asia and the Middle East. The startup aims to continue developing its infrastructure platform while also diversifying its reach into sectors such as real estate, pharmaceuticals, and renewable energy. This strategic expansion aligns with global trends where fintech solutions are increasingly being adopted across various industries to enhance operational efficiency and financial management.

As the corporate banking landscape evolves, innovations like those offered by TransBnk could play a crucial role in modernizing the sector, ultimately enhancing the banking experience for businesses across India and beyond. By addressing the unique challenges faced by corporate clients and providing a unified platform, TransBnk is positioned to not only transform corporate banking in India but also set a precedent for similar initiatives in emerging markets worldwide.

In conclusion, the infusion of $25 million into TransBnk represents a significant step toward bridging the gap between consumer fintech advancements and corporate banking needs in India. As the company continues to grow and innovate, it may very well become a cornerstone of the future banking landscape, fostering greater efficiency, transparency, and accessibility for businesses in a rapidly changing financial ecosystem.

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