TranZact, a small and medium enterprise focused software as a service (SaaS) start-up, has raised $7 million in Series A funding led by led by San Fransico-based Tribe Capital, the company said in a statement on Thursday.
The round also saw participation from Prime Venture Partners, Gemba Capital and existing investor Kae Capital. Several angel investors also participated in including Suhail Sameer – BharatPe; Sriram Krishnan - Ex Spotify/Tinder; Zetwerk co-founders; OfBusiness co-founders Asish Mohapatra, Ruchi Kalra, Vasant Sridhar and Bhuvan Gupta; Devendra Rane – Paytm; Giridhar Malpani – Climber Capital; and Krishna Khandelwal – Locus.sh took part in the round.
The company said it will use the funds to accelerate product-led growth of onboarding over one million SMEs in the next 12 months. It will also use the fresh capital for product innovations and TranZact hire new talent and expand its team across all functions.
Founded by Ritesh Kumar, Sharad Sen Sharma and Rohan Sen Sharma, TranZact said it helps Indian SMEs to digitise and automate their business operations from customer inquiry to dispatch.
The company said it helps SMEs make data-driven decisions for business operations and focus on growth by streamlining inventory, purchase, sales, and quotation management processes.
Since its establishing in 2017, TranZact claims to have onboarded more than 20,000 SMEs across industrial, electrical, and electronics, chemical, and packaging sectors.
“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. With the government pushing to get ‘Vocal for Local’, businesses are looking to modernise their operations for better customer experience and more robust bottom-line growth," Ritesh Kumar, co-founder of TranZact.
"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,” he added.