Zerodha's Rainmatter invests in B2B banking infrastructure startup Blostem

B2B banking infrastructure startup Blostem has raised an undisclosed amount in a pre-Series A funding round from Zerodha's investment arm Rainmatter.

Previously, Rainmatter, along with WEH Ventures and PW's Alakh Pandey, invested Rs 8.5 crore in lifestyle-first chronic care platform Praan Health.

Founded by Ravi Jain, Sandeep Garg, Uday Sharma and Pankaj Pratap Singh, Blostem provides a plug-and-play infrastructure layer that allows brokers, fintech apps, payment companies and wealth-tech platforms to offer retail digital banking products without building separate integrations with every bank. Through a single unified API, partners can launch fixed deposits, FD backed credit cards and Credit on UPI.

The startup claims to have built a network of 10 banks and NBFCs for its fixed deposit marketplace. The list includes Suryoday Small Finance Bank, Unity Small Finance Bank, Shivalik Small Finance Bank, Utkarsh Small Finance Bank, Bajaj Finance, Shriram Finance and Mahindra Finance.

It also claims to work with leading fintech players such as Mobikwik, Jupiter Money, Upstox, Aditya Birla Capital Digital, IRIS by KFin Technologies, Centricity Wealth and GoldenPi. Its fixed deposit marketplace will go live shortly on Zerodha and other large platforms, which will help it to expand its reach.

Blostem plans to use the raised capital to expand distribution, deepen partnerships with banks and launch new products such as FD backed credit cards and Credit on UPI. It will also hire senior leadership across technology, compliance and partnerships to support its next phase of growth.