Transaction banking startup TransBnk on Wednesday announced $4 million funding in Series A round led by early-stage VC 8i Ventures and co-led by impact investor for fintech startups Accion Venture Lab. GMO Venture Partners, Ratio Ventures, Force Ventures along with a prominent group of family offices, institutions, and angel investors also participated in the round.
The latest round comes after the company raised its maiden seed round last year. It plans to deploy the fresh capital towards growing its network of banking partners, eyeing expansion to the Middle East and South East Asia markets and enhancing its technology infrastructure.
Launched in 2022, TransBnk enables corporates, and commercial and institutional companies to make agile and secure transactions with embedded finance and software-as-a-service (SaaS).
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Speaking on the latest round of funding, Vaibhav Tambe, CEO and Co-Founder of TransBnk, said transaction banking has emerged as a transformative force in the banking and technology space, holding $1 trillion global market potential and is projected to be a $2 trillion industry by 2030.
According to Tambe, the $200 billion unsecured lending market in India is likely to be disrupted with transaction banking tapping cash flows.
The company said it has forged partnerships with over 25 banks, extending more than 200 APIs, while working with 100 BFSI clients in 20 months to help them in handling complex transactions like treasury management, co-lending, supply chain finance, and cash flow-based lending use cases.
“TransBnk is revolutionizing India’s trillion-dollar transaction banking sector by empowering banks to offer advanced transaction services, bridging the technology gap. Their innovative approach is set to reshape the financial landscape,” said Vikram Chachra, Founding Partner, 8i Ventures.
According to the data from the Reserve Bank of India (RBI), the banking sector’s deposit growth as of June 14 in the current fiscal had declined by Rs 3.5 lakh crore or 1.6 per cent from the corresponding period in the previous fiscal.
TransBnk said it aims to strengthen banks’ current account saving account (CASA) deposits — a key source of low-cost funding for banks — by connecting them with entities that typically maintain large current account or escrow balances such as fintechs, NBFCs, P2P players, PPI and PG merchants, builders, and developers.