The Evolution of Corporate Banking: Transbnk’s Mission to Modernize Financial Services
Transforming Corporate Banking in India
While digitization has revolutionized banking for Indian consumers, corporate banking services have lagged behind. Many businesses still rely on outdated infrastructure, paper trails, and cumbersome workflows that hinder efficiency. Transbnk aims to bridge this gap, having recently secured $25 million in funding from Bessemer Venture Partners to accelerate its growth.
Consumer Fintech Boom vs. Corporate Challenges
In the past decade, India’s fintech landscape has flourished, fueled by advances like the government’s Unified Payment Interface (UPI) and the rise of payment aggregators. However, these innovations have largely overlooked the needs of businesses, particularly in transaction banking, where manual processes still dominate. Commercial clients often navigate multiple banking portals and rely on spreadsheets for reconciliation, underscoring a critical need for modernization.
A Lucrative Opportunity in Corporate Banking
India’s untapped potential in corporate banking represents a significant opportunity, especially as the B2B fintech industry is projected to reach a $20 billion market size by 2030. With approximately 75 million SMEs, many companies stand to benefit from improved financial infrastructure, yet most fintech startups are currently focused on payments and loans, leaving a gap in the core banking services arena.
Introducing Transbnk: A Comprehensive Solution
Founded in 2022 by former banker Vaibhav Tambe and his team, Transbnk is at the forefront of this banking evolution. The startup offers a “common operating system” designed to provide businesses with a centralized hub for accessing the banking ecosystem. With a robust layer of microservices, Transbnk allows companies to manage treasury, liquidity, and more.
Client-Centric Approach and Impressive Growth
The startup has already integrated with 60 banks, with 40 fully connected to its platform for seamless transactions and reconciliations. Serving 220 clients, including lenders and fintech companies, Transbnk has achieved rapid growth, increasing revenue by over 12 times to reach approximately $12 million in annual recurring income. The company reports healthy margins and became profitable after taxes in February.
Future Vision and Expansion Plans
With fresh funding of around $26 million, Transbnk is poised for expansion beyond India into regions like Southeast Asia and the Middle East. The company aims to build upon its platform while branching into sectors such as real estate, pharmaceuticals, and renewable energy, thereby solidifying its place within the evolving fintech landscape.