ERP (Enterprise Resource Planning) SaaS startup TranZact has raised $7 Mn in a Series A funding round led by Tribe Capital with participation from Prime Venture Partners, Gemba Capital and existing investor Kae Capital.
Suhail Sameer (BharatPe), Sriram Krishnan (Spotify), Devendra Rane (Paytm), Giridhar Malpani (Climber Capital) and Krishna Khandelwal (Locus.sh) also participated in the round.
Founded in 2017 by Ritesh Kumar, Sharad Sen Sharma, and Rohan Sen Sharma, TranZact’s ERP software helps SMEs automate and digitise their operations and make data-driven decisions to streamline purchase, inventory, sales and quotation management. The software works on a freemium model.
According to the startup, it has boarded more than 20,000 SMEs across industrial, electrical, electronics, chemical and packaging sectors. It claims to have helped these SMEs achieve a 20% increase in speed of document creation, 75% decrease in stock variance, and have saved two man-hours of senior management every day.
TranZact plans on utilising the freshly-infused capital towards its goal of onboarding one million SMEs in the next year. It will also invest in expanding its team across all verticals.
“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. ” said Ritesh Kumar, cofounder of TranZact.
The global ERP software market is projected to reach $71.63 Bn by 2026, growing at a CAGR of 8.5% between 2021 and 2026. According to Fortune Business insights, integration of Internet of things (IoT) with business processes is expected to be the central driver of growth in the market.
“Presently, there aren’t great ways to identify, invoice or manage complex supply chains in India. TranZact is breaking a pattern of more archaic systems by providing the most complex supply chains in India with a better way to interface with each other,” said Luke Erickson, partner at Tribe Capital.
Earlier this year, Delhi-NCR and US-based cloud startup SaaS Labs had raised $17 Mn in a Series A funding round from US-based early-stage venture capital firm Base10 Partners and Eight Roads Ventures.