Mumbai, Aug 21, 2024: TransBnk, a Mumbai-based transaction banking platform, has successfully raised $4 million in Series A funding. The round was led by 8i Ventures, with Accion Venture Lab, GMO Venture Partners, and Ratio Ventures, and a prominent group of family offices, institutions, and angel investors also participating.
8i Ventures is the India-focused, early-stage VC fund known for successful fintech investments in M2P, Slice, and Easebuzz. Accion Venture Lab is an early-stage impact investor in inclusive fintech startups that are meeting the financial needs of underserved people globally.
Traditional banks, encumbered by legacy systems, are running into roadblocks to process complex multi-party transactions. Founded by a group of seasoned leaders in transaction banking, TransBnk is reshaping the banking sector by removing this friction. By connecting banks with fintechs, NBFCs, peer-to-peer players, PPI and PG merchants, builders and developers, who typically maintain large current account balances, TransBnk helps solve the banking sector’s problem of shrinking low-cost funding sources for banks.
Since its 2023 seed round, TransBnk has reported a robust 5.5 times revenue growth. The company plans to utilize the Series A raise to expand its network of banking partners and bolster its tech infrastructure and product stack. In pursuing its global expansion plans with a focus on the Middle East and Southeast Asia, TransBnk intends to build market share as a first mover in those markets.
Vaibhav Tambe, CEO and Co-Founder of TransBnk, said: “Transaction banking has emerged as a transformative force in the banking and technology space with a $1 trillion global market potential, and is projected to be a $2 trillion industry by 2030. In India, we expect transaction banking to disrupt the $200 billion unsecured lending market by tapping cash flows. This presents a significant opportunity for TransBnk, considering our domain expertise in banking and technology across various segments like lending, regulatory and payment tech.
This raise underscores investors’ confidence in our vision, team, and ability to operate in a competitive environment. With the support of 8i Ventures, Accion Venture Lab, GMO Venture Partners, Ratio Ventures and our robust team of senior ex-bankers and NBFC officials, we aim to continue building stronger partnerships, driving success together.”
As Vikram Chachra, Founding Partner at 8i Ventures, commented: “TransBnk is revolutionizing India’s trillion-dollar transaction banking sector by bridging the technology divide. Their innovative solution is poised to transform the financial landscape. This investment aligns with our strategy of backing groundbreaking fintech ventures.”
Rahil Rangwala, Managing Partner at Accion Venture Lab, commented:“Complex multi-party transactions cancreate bottlenecks for micro and small entrepreneurs who are often left out of, or poorly served by, the financial system and lack sufficient access to supply chain and marketplace solutions needed for growth. With strong revenue growth, TransBnk has proven that its transaction banking model can make these transactions easier, increasing access. The company is in an excellent position to expand their model internationally with this raise, enabling it to reach more underserved entrepreneurs.”
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About TransBnk:
Incepted in 2022, ‘TransBnk’ enables corporates, commercial, and institutional clients to make agile, secure & robust transactions with embedded finance and SaaS. In the span of only 20 months, the company has forged partnerships with over 25 banks, extending more than 200 APIs, while working with 100 BFSI clients. The platform has supported over 5,000 accounts including escrows and processed more than 50 million transactions. This has positioned TransBnk as the go-to solution for NBFCs, microfinance institutions, banks, and emerging fintech entities navigating complex, multi-party transactions such as digital escrows to manage capital flows in co-lending, supply chain finance, lease rental discounting, and more.
About 8i Ventures:
8i Ventures is an India based early-stage venture capital fund that backs founders creating fintech, commerce and consumer category leaders in India. Over the last decade, 8i and its partners have backed 50+ seed to early-stage start-ups that have created more than US$5B of value for their shareholders in India and globally. These include challenger brands like Slice, Kodo, Blue Tokai and Carwale.com (NSE: CARTRADE) in addition to fintech enablers such as M2P, Signzy, Easebuzz, Bharat-x, Transbnk and EzeTap. For More Info: www.8ivc.com | LinkedIn| Twitter
About Accion Venture Lab:
Accion Venture Lab is a leading early-stage investor in inclusive fintech, providing seed-first capital and strategic support to innovative startups that are meeting the financial needs of underserved people globally. Our global portfolio and local approach enable us to spot and respond to global trends faster, sharing learnings across geographies. Accion Venture Lab is an investment strategy of Accion and is managed by Accion Impact Management. More at www.accion.org/venturelab
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Thessa Mooij
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Director of Public Relations