Highlights;
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Overview of India’s Banking Landscape:
- Consumer fintech in India has seen significant growth, driven by innovations like UPI and payment aggregators.
- Corporate banking, however, remains outdated, relying on manual processes, clunky infrastructure, and spreadsheet-heavy workflows.
- Businesses often juggle multiple banking portals and rely on manual reconciliation, despite India being home to 75 million SMEs.
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Opportunity in Corporate Banking:
- India’s B2B fintech market is projected to reach $20 billion by 2030.
- Most fintech innovation has focused on payments and lending, with fewer startups addressing core banking infrastructure.
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TransBnk’s Solution:
- Founded in 2022 by former bankers Vaibhav Tambe, Lavin Kotian, Pulak Jain, and Sachin Gupta.
- Offers a “common operating system” for businesses to access the banking ecosystem through a single platform.
- Provides microservices for treasury, liquidity, and escrow management.
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Traction and Integration:
- Works with 60 banks, with 40 fully integrated into its platform.
- Processes transactions, payments, and reconciliation for 220 customers.
- Customers include 80% merchants (lenders, fintechs, NBFCs) and 20% banks using white-labeled software.
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Financial Performance:
- Revenue has grown 12x over the past year, reaching $12 million in annual recurring revenue (ARR).
-Turned profitable after taxes in February 2024 with 80% gross margins. - Processes 110 million transactions monthly, covering 11,000 bank accounts and utilizing 1,500 APIs.
- Revenue has grown 12x over the past year, reaching $12 million in annual recurring revenue (ARR).
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Funding and Expansion Plans:
- Secured $25 million in Series B funding led by Bessemer Venture Partners, with $4 million in secondary investment.
- Other investors include Fundamentum, Arkam Ventures, 8i Ventures, Accion, and GMO Venture Partners.
- Total funding raised: ~$26 million (valuation grew 7x from the last round).
- Plans to expand to Southeast Asia and the Middle East, targeting sectors like real estate, pharma, and renewable energy.
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Global Context:
- Companies like Finastra, Temenos, and Treasury Prime offer similar solutions globally, but few startups in India focus on this space.
- TransBnk’s success hinges on deep banking infrastructure expertise and close relationships with banks.
While digitization has significantly advanced banking services for Indian consumers, the corporate banking sector has lagged behind, continuing to rely on outdated infrastructure, paper-based processes, and cumbersome spreadsheet workflows. To address this gap, TransBnk has emerged as a solution, and Bessemer Venture Partners has invested $25 million in the three-year-old startup to fuel its growth.
Over the past decade, India has witnessed a surge in consumer fintech innovation, driven by developments like the government-backed Unified Payments Interface (UPI) and the rise of payment aggregators. However, these advancements have not extended to corporate banking, where transactions, collections, and account statements remain largely manual. Businesses often manage multiple internet banking platforms and rely on spreadsheets for reconciliation. This is despite India being home to the world’s largest SME market, with nearly 75 million SMEs, all of which could benefit from more modern financial infrastructure.
The untapped potential in corporate banking presents a significant opportunity. According to a February 2024 report by Chiratae Ventures and The Digital Fifth, India’s B2B fintech industry is projected to reach a $20 billion market size by 2030. The country is already home to 26 fintech unicorns with a combined valuation of $90 billion. However, most of these startups have focused on payments and lending rather than core banking infrastructure.
Based in Mumbai, TransBnk was co-founded by former bankers Vaibhav Tambe, Lavin Kotian, Pulak Jain, and Sachin Gupta. The startup offers a “common operating system,” a unified platform that allows businesses to access the banking ecosystem through a single window. This foundational layer of microservices enables businesses to manage treasury, liquidity, and escrow, among other financial functions.
Tambe, co-founder and CEO, explained, “During our time in banking, we often heard from customers who wanted a consolidated platform for transaction banking. We decided to take on this challenge. Our goal was to integrate multiple banks and create a single platform accessible via web, mobile, SDKs, or APIs.”
Since its inception in 2022, TransBnk has integrated with 60 banks, 40 of which are fully integrated to process transactions and other core functionalities. The startup serves 220 customers, 80% of whom are merchants, including lenders, fintechs, and NBFCs, while 20% are banks that have white-labeled TransBnk’s software.
Globally, companies like Finastra, Temenos, and Infosys’ Finacle are modernizing banking through software platforms. In the U.S., Treasury Prime offers embedded banking solutions. However, in India, startups in this space are scarce.
Building for this sector requires deep expertise in banking infrastructure, integrating legacy systems with enterprise tools like ERPs and treasury platforms. It also demands strong relationships with banks to leverage their data and workflows.
TransBnk has seen significant growth, with its revenue increasing over 12x in the past year, reaching around $12 million in annual recurring revenue. The startup turned profitable after taxes in February, with gross margins of about 80%. It processes 110 million transactions monthly, covering 11,000 bank accounts and utilizing over 1,500 APIs.
The Series B funding round, which included $4 million in secondary investments, also saw participation from Fundamentum, Arkam Ventures, 8i Ventures, Accion, and Japan’s GMO Venture Partners. TransBnk plans to expand beyond India into Southeast Asia and the Middle East, while also targeting sectors like real estate, pharma, and renewable energy, according to Tambe.
With this latest funding, TransBnk has raised a total of around $26 million. Its valuation has grown sevenfold since the last round, though specific figures were not disclosed.
Source: https://techcrunch.com/2025/08/27/with-indias-corporate-banking-lagging-decades-behind-consumer-fintech-transbnk-raises-25m-to-bridge-the-gap/
