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Updated on: Thursday, December 16, 2021, 10:31 AM IST

Startup TranZact raises $7 mn in Series A round; to digitally transform SMEs

The investments will help accelerate TranZact’s product-led growth vision of onboarding over 1 million SMEs in the next 12 months, it said in a press release. / Representational Image |

The investments will help accelerate TranZact’s product-led growth vision of onboarding over 1 million SMEs in the next 12 months, it said in a press release. / Representational Image |

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TranZact, a SME tech startup offering a SaaS-based digital transformation tool for SMEs has raised $7 million in Series A funding. The funding was led by SF-based Tribe Capital with participation from Prime Venture Partners, Gemba Capital and existing investor Kae Capital. Several angel investors also participated 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.

The investments will help accelerate TranZact’s product-led growth vision of onboarding over 1 million SMEs in the next 12 months, it said in a press release.

Ritesh Kumar, Cofounder, TranZact said, “Traditionally, SMEs in India have been slow to adopt technology but we are seeing a considerable shift and instead of complex softwares and large investments, SMEs are looking for agile, quick to implement, simple tools to achieve digital transformation. Our 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."

How fresh capital will be used

The startup will use the fresh capital for product innovations that bring simplicity, leverage evolving technology, and harness the power of data to help SMEs grow better. TranZact also plans to invest in new talent and expand its team across all functions.

What does TranZact do?

Founded by Ritesh Kumar, Sharad Sen Sharma & Rohan Sen Sharma, TranZact is helping Indian SMEs digitize and automate their entire business operations -from customer inquiry to dispatch. It helps SMEs make data-driven decisions for key business operations and focus on growth by streamlining Inventory, Purchase, Sales and Quotation management processes in a hassle-free and user-friendly manner.

How to use software?

The software is free to signup and gets implemented within five working days with a 24/7 customer support team to handle any issues, according to the press release.

A study by Google -KPMG showed that digitally-empowered SMEs have about twice the revenue growth projections in comparison to offline SMEs. According to research done by the Boston Consulting Group (BCG), SMEs that adopt new technology have 10 points higher job growth and 11 points higher revenue growth than low-tech SMEs.

Arjun Sethi, Co-Founder and 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 ‘free’mium 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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Published on: Thursday, December 16, 2021, 10:31 AM IST
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