India’s Decentro, the Y Combinator-backed startup that helps companies enter the fintech market by deploying its APIs, has raised $4.7 million in a Series A round.
The Bengaluru-based startup offers banking and payments APIs that allow development of fintech products such as banking, payment cards, neobanking and collections and payout services in a short period of time. Decentro has partnered with scores of industry players including Axis Bank, ICICI Bank, Kotak Mahindra Bank, Yes Bank, Visa, RuPay, Quickwork, Equifax, Aadhaar and National Securities Depository Limited (NSDL) to offer solutions for prepaid payment instruments, no-code workflows, conversational banking via WhatsApp and enable document verification and KYC process.
“Whenever a fintech startup or a company wants to launch a new product in the market, it takes them a minimum of a few months to launch. And it purely has to do with the bank processes, the way the bank runs the process, as well as the tech of the bank. It’s not so great. That’s essentially the problem we are solving,” said Rohit Taneja, co-founder and CEO, Decentro, in an interview with TechCrunch.
Taneja, who has previously co-founded social payments platform Mypoolin, which was acquired by Cupertino-based financial services company Wibmo, and spent eight years in the fintech market, co-founded Decentro with Pratik Daudkhane in 2020 — after personally facing all the problems he wants to address. He considers Cashfree and PineLabs-owned Setu among the key competitors for the startup, but believes that it’s differentiating with “solution-driven enterprise customer base” and “superior” product experience.
The startup has already amassed over 250 customers in commerce and fintech sectors. Some of these include Freo, Mobile Premier League, FamPay, CreditWise, Uni Cards and BharatX.
Decentro, which has a headcount of over 40 people, offers products to let companies create virtual, business and escrow accounts, enable payments and provide lending. The available products comply with all the latest regulations in the country, the startup said.
The Series A round of Decentro is led by Rapyd Ventures, the venture arm of the U.K. fintech-as-a-service giant, along with participation from Leonis VC and Uncorrelated Ventures. Indian angel investors including CRED founder Kunal Shah, Groww co-founder and CEO Lalit Keshre, Gupshup co-founder and CEO Beerud Sheth and former CBO of BharatPe Pratekk Agarwaal also participated in the funding round.
Taneja told TechCrunch that the startup aims to utilize the fresh funding to go deeper into its partnership with banks and enter categories including large enterprises. It also plans to acquire licenses and launch in Singapore to expand beyond India eventually.
“Building their innovation layer in India first gives Decentro a great base to build scalable innovations that can be expanded as other emerging markets modernize their own infrastructure. We’re excited to support Decentro as they scale and expand,” said Joel Yarbrough, MD of Rapyd Ventures and Rapyd’s VP of Asia Pacific, in a prepared statement.
Before the latest funding round, Decentro had raised a total of $1.7 million in seed and angel rounds. The seed round, which closed in October 2020, included investments from Y Combinator and FundersClub.
Since then, the startup claims its valuation has increased by 3.3x and revenues have grown by more than 35x. Taneja, however, did not reveal any specifics about the valuation.
Decentro’s API transactional volumes have also been growing by 50 to 70% every quarter since early 2021, with an average of 70 million annualized API transactions recorded over the last 12 months, it said. The startup is also profitable, the co-founder said.