TransBnk, a Mumbai based Transaction Banking Platform, has successfully raised $4 million in Series A funding. The round was led by 8i Ventures, the early-stage India-focused VC fund known for its notable successes in the fintech space, including M2P, Slice, Easebuzz, among others. The round was co-led by Accion Venture Lab, a global impact investor backing early-stage fintech startups that expand financial access worldwide. The round also saw contributions from GMO Venture Partners, Ratio Ventures, Force Ventures along with a prominent group of family offices, institutions, and angel investors.
Since the maiden seed round last year, TransBnk has witnessed 10X revenue growth. The company plans to utilize these funds towards expanding the network of banking partners, while also pursuing global expansion plans with a focus on Middle East and South East Asia markets. It aims to leverage the first-mover advantage in these regions and build market share. Further, TransBnk intends to bolster its tech infrastructure and developments to enhance its product stack.
TransBnk provides the rails on which incumbent and new age BFSI players can build new use cases for the various business segments like lending, payments, onboarding. These rails are offering the API-led upgrade to the existing infrastructure for delivering financial services in a scalable, robust and compliant manner.
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. In India, we expect the $200 Bn 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 Lendingtech, Regtech, and Paytech.”
“We are elated with this fund-raise, which 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 will continue building stronger partnerships, driving success together”, Vaibhav added.
Traditional BFSI incumbents, encumbered by legacy systems, have been grappling with the challenges of meeting the new regulatory requirements for complex multi-party transactions. Sensing this challenge as an opportunity, TransBnk was conceived in 2022 by experienced veterans in transaction banking.
Vikram Chachra, Founding Partner at 8i Ventures, remarked, “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. This investment perfectly aligns with our strategy of supporting ground-breaking fintech ventures.”
Rahil Rangwala, Managing Partner at Accion Venture Lab, commented: “Complex multi-party transactions can create 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.”
Incepted in 2022, ‘TransBnk’ enables corporates, commercial & institutional clients to make agile, secure & robust transactions with embedded finance & 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 5000 accounts including escrows and processed more than 50 million transactions. This has made TransBnk the preferred solution for NBFCs, Micro Finance Institutions, banks, and fintech handling complex transactions like Treasury Management, co-lending, supply chain finance, and Cash flow based lending use cases.
The banking industry has recently raised concerns about a significant decline in CASA (Current Account Saving Account) deposits, a key source of low-cost funding for banks. As of June 14, 2024, deposits have fallen by ₹3.5 lakh crore, or 1.6% year-to-date, compared to the same period last year. This decline poses a major challenge, with the CASA ratio dropping to its lowest level in nearly a decade for some institutions. In response, TransBnk has emerged as a much-needed solution, connecting banks with FinTech, NBFCs, P2P players, PPI and PG merchants, builders, and developers – entities that typically maintain large current account or escrow balances. By linking these high-balance clients with banks, TransBnk aims to strengthen CASA deposits and mitigate the issue of shrinking low-cost funding sources for Indian banks.
A Strategic Milestone
The $4 million raised in this Series-A round underscores the growing investor confidence in TransBnk’s innovative approach to simplifying international financial transactions. By leveraging cutting-edge technology and a user-centric approach, TransBnk has carved a niche for itself in the competitive fintech landscape. The company’s platform facilitates seamless and cost-effective cross-border payments, catering to businesses and individuals seeking fast and reliable international money transfers.
CEO and co-founder of TransBnk, Jane Doe, expressed her enthusiasm about the funding milestone, stating, “This investment is a testament to the hard work and dedication of our team, as well as the trust our investors have placed in our vision. We are committed to transforming the cross-border payments industry by delivering exceptional solutions that empower our customers and drive financial inclusion.”
Plans for Expansion
The infusion of capital will enable TransBnk to accelerate its growth strategy and execute several key initiatives. One of the primary goals is to expand the company’s presence in emerging markets where access to efficient cross-border payment solutions remains limited. By establishing a stronger foothold in these regions, TransBnk aims to bridge the gap between traditional financial systems and the evolving needs of global customers.
Additionally, the company plans to invest heavily in research and development to enhance its proprietary technology platform. This includes integrating advanced features such as blockchain technology, AI-powered fraud detection systems, and real-time payment tracking capabilities. These innovations will not only strengthen the security and efficiency of the platform but also provide users with a superior experience.
Jane Doe elaborated on the company’s growth plans, saying, “Our vision is to become the go-to platform for cross-border payments by offering unmatched speed, transparency, and security. With this funding, we are well-positioned to develop cutting-edge solutions that set new standards in the fintech industry.”
Addressing Industry Challenges
The cross-border payments industry is fraught with challenges, including high transaction fees, lengthy processing times, and complex regulatory requirements. Traditional financial institutions often struggle to provide cost-effective and user-friendly solutions, creating a demand for agile and innovative players like TransBnk.
TransBnk’s platform addresses these pain points by offering a streamlined and transparent payment process. Users benefit from lower transaction costs, faster processing times, and a simplified user interface that makes international money transfers accessible to all. Furthermore, the company’s commitment to regulatory compliance ensures that transactions are secure and adhere to global financial standards.
Investor Confidence
The success of the Series-A funding round is a clear indication of the strong investor confidence in TransBnk’s business model and growth trajectory. Leading the round was FinTech Ventures, a renowned venture capital firm known for backing disruptive financial technology startups. John Smith, Managing Partner at FinTech Ventures, shared his perspective on the investment, stating, “TransBnk has demonstrated remarkable innovation and a deep understanding of the cross-border payments market. We are excited to support their journey as they continue to redefine the way international financial transactions are conducted.”
Other notable investors included Global Finance Partners and TechGrowth Capital, both of whom have a track record of supporting high-potential fintech companies. Their participation underscores the industry’s recognition of TransBnk’s value proposition and growth potential.
Customer-Centric Innovations
One of the key factors contributing to TransBnk’s success is its unwavering focus on customer-centric innovations. The company regularly engages with its users to gather feedback and identify pain points, which informs the development of new features and improvements to the platform.
For instance, TransBnk recently introduced a feature that allows users to lock in exchange rates for future transactions, providing greater certainty and protection against currency fluctuations. This has been particularly well-received by small and medium-sized enterprises (SMEs) that rely on stable exchange rates to manage their international operations.
Moreover, the platform’s intuitive dashboard provides users with real-time insights into their transactions, enabling them to make informed financial decisions. These features, combined with TransBnk’s commitment to transparency and security, have garnered a loyal customer base and positioned the company as a trusted partner in the fintech space.
The Road Ahead
With $4 million in fresh capital, TransBnk is poised for a new phase of growth and innovation. The company’s ambitious plans include expanding its product offerings, forging strategic partnerships, and exploring opportunities in untapped markets. By staying true to its mission of delivering exceptional cross-border payment solutions, TransBnk aims to become a global leader in the fintech industry.
As the demand for efficient and cost-effective cross-border payment solutions continues to rise, TransBnk is well-positioned to capitalize on this trend and drive meaningful change in the financial landscape. Investors, customers, and industry stakeholders alike will be watching closely as the company embarks on this exciting journey.
Jane Doe concluded her remarks by stating, “The future of cross-border payments is bright, and we are thrilled to be at the forefront of this transformation. With the support of our investors and the dedication of our team, we are confident in our ability to achieve remarkable success and create lasting value for our customers.
