TranZact Raises $7 Million To Digitally Transform SMEs The funds will be used to innovate products, leverage evolving technology and invest in new talent

By Shrabona Ghosh

Opinions expressed by Entrepreneur contributors are their own.

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.


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.

Wavy Line
Shrabona Ghosh


A journalist with a cosmopolitan mindset. I lead a project called 'Corporate Innovations' wherein I cover corporates across verticals and try to tell stories on innovations. Apart from this, I write industry pieces on FMCGs, auto, aviation, 5G and defense. 

Related Topics

Starting a Business

5 Tips For Launching a Business While Keeping Your Day Job

Launching a business while holding down a 9-to-5 is no small feat. It's a common path for aspiring entrepreneurs, but it's not without its challenges.


6 Ways Successful Entrepreneurs Manage Their Time and Achieve a Work-Life Balance

Maintaining a healthy work-life balance as an entrepreneur is not a luxury; it's a necessity.

Growing a Business

This Stock Screener is on Sale for Memorial Day

invest while mitigating risk with this top-rated stock screening app.

Making a Change

8 Traits of Exceptionally Motivated Entrepreneurs

The desire to make a positive difference in the world, not simply the desire to be rich, is what distinguishes people driven to succeed.


DealShare Founder Sourjyendu Medda On Apps He Can't Live Without

"I am just a little miffed that the next generation will never know the struggles we all had with cash, wallets, and change," he says


AdmitKard Raises INR 10 Cr In Pre-Series A Round

Including the current round, the platform has raised a total of INR 17 crore. It has created a community of international students and students looking to study abroad