TransBnk Raises $25M to Modernize India’s Corporate Banking

India’s corporate banking sector has long lagged behind the rapid digitization seen in consumer banking, creating a significant opportunity for modernization. While retail customers enjoy seamless digital payments and user-friendly apps, businesses still grapple with outdated systems, manual reconciliation, and fragmented banking interfaces. This gap is especially pronounced given India’s position as the world’s largest small and medium enterprise market, with nearly 75 million SMEs in need of more efficient financial tools.

TransBnk, a Mumbai-based fintech startup, aims to bridge this divide with what it describes as a common operating system for corporate banking. The company recently secured $25 million in a funding round led by Bessemer Venture Partners, with participation from Fundamentum, Arkam Ventures, 8i Ventures, Accion, and Japan’s GMO Venture Partners. This injection of capital will help accelerate the platform’s development and support its expansion into international markets.

Founded in 2022 by former bankers Vaibhav Tambe, Lavin Kotian, Pulak Jain, and Sachin Gupta, TransBnk offers a unified digital layer that integrates with multiple banks. The platform allows businesses to manage payments, collections, treasury, liquidity, and escrow services through a single interface, eliminating the need to juggle separate internet banking portals or rely on error-prone spreadsheets.

According to Tambe, the idea emerged from repeated client requests during their banking careers for a consolidated corporate banking solution. “We asked ourselves, can we integrate with multiple banks and create one cohesive platform, whether through web, mobile, SDKs, or APIs?” he explained.

Currently, TransBnk works with 60 banks, 40 of which are fully integrated into its system. The platform processes around 110 million transactions monthly across 11,000 bank accounts, leveraging more than 1,500 APIs. Its client base includes 220 customers, 80% of which are merchants such as lenders, fintechs, and non-banking financial companies. The remaining 20% are banks that use TransBnk’s white-labeled software to offer enhanced corporate services to their own clients.

The startup has demonstrated impressive traction over the past year, growing its annual recurring revenue more than twelvefold to approximately $12 million. It achieved profitability after taxes in February and reports gross margins of around 80%.

While global players like Finastra, Temenos, and Infosys Finacle dominate the corporate banking software space, and U.S. firms like Treasury Prime offer embedded banking solutions, India’s B2B fintech infrastructure segment remains underpenetrated. This is despite projections that the country’s B2B fintech industry could reach a market size of $20 billion by 2030.

TransBnk’s latest funding round included $4 million in secondary transactions and valued the company seven times higher than its previous round, though specific figures were not disclosed. With the new capital, the startup plans to expand beyond India into Southeast Asia and the Middle East, while also deepening its presence in sectors such as real estate, pharmaceuticals, and renewable energy.

The broader shift toward modernizing corporate banking reflects a growing recognition that businesses, like consumers, deserve efficient, integrated, and digitally-native financial tools. As more companies seek to streamline operations and improve cash management, platforms like TransBnk are well-positioned to redefine how enterprises interact with the banking ecosystem.

(Source: TechCrunch)