Transaction Banking Startup TransBnk Raises $25 Million Series B Round led by Bessemer Venture Partners

Transaction banking platform TransBnk has raised $25 million Series B funding led by Bessemer Venture Partners with participation from Arkam Ventures and Fundamentum Partnership. Existing investors 8i Ventures, Accion Venture Labs, GMO Venture Partners also participated in the round, the company announced on Thursday. 

The latest investment will be deployed for geographical expansion and enhancing the company’s technology and product talent.

Founded in 2022, TransBnk is building a common operating system for fintechs and other institutions to access the banking ecosystem. It allows clients to leverage API infrastructure from various banks for seamless onboarding, transactions and reconciliations. 

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Over the past decade, there has been much tech-first innovation on the retail banking side that has made consumer journeys nimble and seamless. Corporate & business banking, however, has long lagged behind the innovation seen in retail banking. 

According to the company, there is a gaping void in how corporations and lenders manage their digital banking operations, especially when it comes to navigating a fragmented ecosystem of accounts, interfaces, and manual processes. While retail users enjoy seamless, mobile-first banking journeys, corporate customers often rely on spreadsheets, RM calls, and multiple portals just to get basic tasks done. 

“This is the gap which TransBnk aims to plug, by embedding itself directly into the core infrastructure of banks, enabling companies to view, transact, and reconcile across their multiple banking relationships in one unified, programmable interface,” the company said.

TransBnk has integrated over 40 banks, including private and public sector players, MNC banks and small finance banks.

Speaking on the latest fundraise, Vaibhav Tambe, CEO and co-founder, TransBnk said Series B is a massive growth catalyst fueling the company’s roadmap to scale, innovate, and set new benchmarks in global transaction banking. 

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“Our proprietary tech Infra is already powering leading NBFCs, fintech players, banks, corporates and we are now expanding this across BFSI, Mid-Corporate & SMEs,” said Tambe.

The startup claimed profitability in February this year. It raised $4 million in Series A round in August last year led by 8i, with participation from Accion, GMO, Ratio. The company had secured its seed funding of $1 million in June 2023.

“Corporate banking has lagged behind their retail counterparts, where over the past 10 years innovation in this space has allowed users to enjoy frictionless, mobile-first banking journeys. We are confident that Transbnk will bring the same transformative spirit and user delight to the corporate and transaction banking ecosystem,” said Vishal Gupta, Partner, Bessemer Venture Partners.