API Banking Startup TransBnk Nets $25 Mn Series B; Plans Global Expansion

Mumbai-based banking infrastructure startup TransBnk has raised $25 Mn (nearly INR 220 Cr) in its Series B round led by Bessemer Venture Partners.

The round also saw participation from Arkam Ventures and Fundamentum Partnership as well as existing backers such as 8i Ventures, Accion Venture Labs and GMO Venture Partners.

The startup plans to utilise the fresh proceeds to expand its presence to Southeast Asia and the Middle East. A chunk of the capital will also be deployed to strengthen the company’s presence in India.

Founded in 2022 by Vaibhav Tambe, Lavin Kotian, Pulak Jain, and Sachin Gupta, TransBnk provides an API-based platform that connects corporates, fintechs, and lenders to multiple banks through a single system. The platform helps companies manage transactions and reconciliations without relying on multiple portals or manual processes.

The startup claims to have reached “double-digit million dollars” in revenue within two years of its operations, but declined to reveal specifics.

TransBnk currently claims to work with 40+ banks and serves over 220 clients. But venturing into Southeast Asia and the Middle East means taking on other Indian API Banking startups that have made inroads into these markets.

The funding comes at a time when a growing band of homegrown API-based infrastructure startups are disrupting how banks automate their operations. While Decentro operates a full-stack API banking startup, Setu (acquired by Pine Labs) is an API provider that offers services across bill payments, savings, credit and payments. Then, there is M2P Fintech, which is also building middleware infrastructure for local banks.

The fundraise also comes at a time when there is a growing regulatory push to leverage AI to bolster sector’s operations.

Recently, the Reserve Bank of India (RBI) has released its FREE-AI framework (Framework for Responsible and Ethical Enablement of Artificial Intelligence) for the financial sector.

The central bank has laid out seven guiding principles, including trust, fairness, accountability, and explainability, to ensure safe adoption of AI across banking and fintech. The report calls for stronger governance, AI-specific compliance, and consumer transparency.

At the heart of all this is the burgeoning Indian fintech sector, which is projected to become a $2.1 Tn opportunity by 2030.

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