It marks the Mumbai-based company’s first major institutional funding since raising $1 million in June 2023.
Accion Venture Lab, GMO Venture Partners, Ratio Ventures, Force Ventures as well as several family offices and angel investors also participated in this round.
TransBnk’s post-investment valuation stood at about $15 million, up three times from its last round valuation, according to CEO Vaibhav Tambe.
The fresh capital will be used to expand TransBnk’s network of banking partners as well as drive its global expansion strategy, with a focus on West Asian and Southeast Asian markets. The company also plans to strengthen its technology infrastructure and enhance its product offerings.
“Transaction banking has emerged as a transformative force in the banking and technology space. In India, we expect the $200 billion unsecured lending market to be disrupted with transaction banking tapping cash flows. This presents a significant opportunity to us, considering our domain expertise in banking technology across various segments like lending tech, reg tech and pay tech,” said Tambe.
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Founded in 2022 by Tambe, a former senior executive at IndusInd Bank, TransBnk provides a transaction banking platform that offers the infrastructure for banks, non-banking financial companies (NBFCs) and fintech firms to develop use cases across lending, payments and onboarding.Leveraging application programming interface-led upgrades, TransBnk enables its clients to deliver financial services in a scalable manner.
Since its inception, it has partnered with about 25 banks and 100 NBFCs and fintech firms. The company claims to have supported about 5,000 accounts, including escrows, and processed about 50 million transactions to date.
Following the seed round last year, TransBnk has witnessed nearly tenfold revenue growth, according to Tambe. The company currently has an annual recurring revenue of $1.2-$1.3 million and expects it to increase three to four times over the next six months.
“TransBnk is revolutionising 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.