Digitization has transformed consumer banking in India. However, corporate banking still relies on outdated infrastructure, paper trails, and spreadsheet-heavy processes. TransBnk wants to change that. Bessemer Venture Partners has led a $25 million funding round in the three-year-old Mumbai-based startup. The investment will accelerate its mission to bridge the gap between consumer fintech and corporate banking.
Over the past decade, India witnessed a fintech revolution. UPI and payment aggregators fueled a surge in digital payments. Yet, businesses continue to face slow, manual systems for payments, collections, and reconciliations.
This gap remains stark, even though India hosts nearly 75 million SMEs — the world’s largest market. These enterprises urgently need modern financial infrastructure.
The opportunity is massive. A February 2024 report by Chiratae Ventures and The Digital Fifth projects India’s B2B fintech market will reach $20 billion by 2030. Moreover, India already counts 26 fintech unicorns valued at $90 billion. However, most of them have focused on payments and lending, not core banking infrastructure.
TransBnk aims to fill this void. Founded in 2022 by former bankers Vaibhav Tambe, Lavin Kotian, Pulak Jain, and Sachin Gupta, the startup offers a “common operating system” for businesses. Through a single platform, companies can access banking services like treasury, liquidity, and escrow management.
“During our banking days, we always got a lot of customers asking us for a single, consolidated platform for transaction banking or corporate banking,” said Tambe, co-founder and CEO. “And we thought, let’s take up this challenge… The idea was that can we consolidate and integrate with multiple banks and then create a single platform.”
Currently, TransBnk works with 60 banks, 40 of which are fully integrated into its platform. It serves 220 customers — 80% are merchants such as lenders, fintechs, and NBFCs, while 20% are banks white-labeling its software.
Globally, firms like Finastra, Temenos, and Infosys’ Finacle lead banking modernization. In the U.S., Treasury Prime provides embedded banking. Yet, in India, startups in this niche remain scarce.
Building in this sector demands deep technical expertise. Startups must integrate legacy banking systems with enterprise platforms like ERPs and treasury solutions. They also need strong relationships with banks to access and build on their workflows.
TransBnk has shown strong growth. Over the past year, it scaled revenue 12x to nearly $12 million ARR. It turned profitable after taxes in February, reporting gross margins of about 80%. The platform now processes 110 million transactions monthly, covering 11,000 accounts and using 1,500 APIs.
The Series B round also included $4 million in secondary sales. Other investors such as Fundamentum, Arkam Ventures, 8i Ventures, Accion, and Japan’s GMO Venture Partners participated.
Next, TransBnk plans to expand into Southeast Asia and the Middle East. It also wants to serve sectors like real estate, pharma, and renewable energy.
With this funding, TransBnk has raised $26 million in total. Its valuation has increased sevenfold since the previous round, though the company has not disclosed exact figures.
