Mumbai-based software-as-a-service (SaaS) startup TranZact has raised $7 million in a Series A funding round led by San Francisco-based Tribe Capital. The round was also participated by Prime Venture Partners, Gemba Capital, and existing investor Kae Capital.
Notable angel investors, including Suhail Sameer (BharatPe), Sriram Krishnan (Ex- Spotify/Tinder, Zetwerk Co-Founders, OfBusiness Co-founders, Devendra Rane (Paytm), Giridhar Malpani (Climber Capital), and Krishna Khandelwal (Locus.sh), also participated in the round.
Founded in 2017 by Ritesh Kumar, Sharad Sen Sharma, and Rohan Sen Sharma, TranZact, with its digital platform, helps Indian SMEs automate and digitize their operations. The startup also helps SMEs make data-driven decisions for operations by streamlining purchase, inventory, sales, and quotation management processes in a hassle-free and user-friendly manner.
With this round of funding, TranZact will focus on product innovation that can bring simplicity, leverage evolving technology, and harness the power of data to help SMEs grow better. Besides this, it is also looking to hire new talent and expand its team across all functions.
The latest investment will help accelerate TranZact’s product-led growth vision of onboarding over one million SMEs in the next 12 months, the statement said.
“Traditionally, SMEs in India have been slow to adopt technology but we are seeing a considerable shift and instead of complex software and large investments, SMEs are looking for agile, quick to implement, simple tools to achieve digital transformation," Ritesh Kumar said.
He further said that their vision is to build an intelligent layer on top of the SaaS platform to create a transaction-backed marketplace where SMEs can discover new customers, suppliers, finance partners, logistics partners and receive other value-added services.
According to a statement, TranZact's software is free to signup and gets implemented within five working days with a 24x7 customer support team to handle any issues.
Since its launch, TranZact has onboarded more than 20,000 SMEs across industrial, electrical, and electronics, chemical, and packaging sectors, it said.
Speaking on the investment, Arjun Sethi, Co-founder & Partner, Tribe Capital, said: "In India, SMEs have historically struggled to pursue more than one growth path at the same time due to a lack of cost-efficient and easy to implement digital transformation solutions. TranZact solves this core need by efficiently leveraging their ‘freemium' plan and simplified onboarding process to onboard new customers."
Shripati Acharya, Managing Partner, Prime Venture Partners, said, “Digital SMEs will power India's $5 trillion GDP ambition and TranZact will play a very big role in making this happen.”
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