TranZact Raises $7 Million To Digitally Transform SMEs
The funds will be used to innovate products, leverage evolving technology and invest in new talent
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.
The funds will be used to innovate products, leverage evolving technology and harness the power of data. TranZact also plans to invest in new talent and expand its team across all functions.
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 company's USP lies in its schemes. It provides Forever Freemium Plan, a free plan that helps digitize basic processes; Fast Onboarding in Five Days, a self-serve product that reduces onboarding time significantly and Excel Like User Interface, a plan that ensures adoption from users across all the departments i.e. sales, procurement, store, production, etc.
Digitisation is a great way of building a robust and conducive business environment for SMEs. The SaaS-based company keeps up with the competition by introducing unique ideas, "Over 70 per cent of our TG use Tally for accounting and Excel for business operations. We have built TranZact to help SMEs to transform their business processes digitally without moving their accounts from Tally by leveraging our robust integration with Tally," said Ritesh Kumar, co-founder, TranZact.
Talking about the changes the company had to undergo because of COVID-19, he said, "COVID-19 made digitization a necessity rather than a choice. Many churned customers came back to us due to our advantage of being on Cloud and the fast onboarding online support that we offer. We have also seen a huge surge in acquisition through our digital channels Google/Facebook/Linkedin. The pandemic gave us leverage to scale rapidly with much lesser cost compared to pre-pandemic times. Also, we have seen a huge growth in our product led growth, i.e. 30 per cent of monthly acquisition. Looking at the data and interest from incoming customers, we have launched a freemium pricing model with self-serve onboarding and chat support, which helped us scale 50 times in less than a year."
The company aims to make 15 million-plus SMEs grow through a transaction backed digital marketplace which will help them discover new customers, suppliers and value added service providers. "In the next one year we aspire to acquire over one million companies for software and look forward to expanding our business in south east Asia and Middle East," said Kumar.