Startup TranZact Raises $7M to Digitally Transform SMEs

Article By : Prime Venture Partners

TranZact helps Indian SMEs digitize and automate their entire business operations.

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 noted angel investors also participated in TranZact include 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. 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.

Founded by Ritesh Kumar, Sharad Sen Sharma and Rohan Sen Sharma, TranZact is helping Indian SMEs digitize and automate their entire business operations—from customer inquiry to dispatch. TranZact 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. The software is free to signup and gets implemented within five working days with a 24/7 customer support team to handle any issues.

Since its inception in 2017, TranZact has on-boarded more than 20,000 SMEs across industrial, electrical, and electronics, chemical, and packaging sectors. These SMEs have seen a 20% increase in the speed of document creation, 75% decrease in stock variance and the senior management are saving more than 2h everyday in regular operations. Over 80,000 monthly GST documents have been created and TranZact is recording monthly transactions worth over $150 million.

The small and medium enterprises (SME) sector has emerged as a highly vibrant and dynamic sector of the Indian economy. Digitization is a great way of building a robust and conducive business environment for SMEs which provides enormous opportunities to the enterprise and enables them to compete globally. Many SMEs and startups in the last year have upgraded their technology by enabling online business models for consumer transactions, listing products/services on marketplaces and aggregators and scaling their back-end systems. 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.

Although there is a visible shift in SMEs, many in the manufacturing and trading sectors are still lagging behind in digitization. Family owned SMEs have unstructured workflows across multiple departments. TranZact helps such businesses to structure the entire business process by enabling the entire team to work together on a single platform. TranZact also seamlessly integrates with existing tools like Tally and Excel enabling smoother interactions and less miscommunication. All critical data is available in real-time on a mobile device, where the company and its employees can access it any time from virtually everywhere.

According to a latest report by Zinnov, the number of SMEs in India is estimated to increase from 75 million currently to 105 million in 2024, out of which 90% would be ‘digitally influenced’. From estimated $30 billion in 2019, the market opportunity rising from digital technology adoption among SMEs will grow at around 25% CAGR to around $85 billion in 2024. With such rapid progress, it has become imperative for businesses to digitally transform as adoption of technology is no longer an option but a fundamental requirement. TranZact is working with thousands of SMEs in India towards this goal and to turn traditional business models into innovative and effective models capable of competing globally. Instead of worrying about operational details, it enables SMEs to focus on growth and improve their business efficiency.

 

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