Rapyd Ventures backs Indian fintech-as-a-service startup Decentro • TechCrunch
India DicentroThe Y Combinator-backed startup that helps companies enter the fintech market by deploying their APIs raised $4.7 million in the first round of the round.
The Bengaluru-based startup offers banking and payments APIs that enable the development of fintech products such as banking, payment cards, new banking, collection and payment services in a short period of time. Decentro has partnered with dozens 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 provide solutions for prepaid payment instruments, without token Workflow, WhatsApp banking chats and enable document verification and KYC process.
“When a startup or a fintech company wants to launch a new product in the market, it takes at least a few months to launch. It is just about the operations of the bank, the way the bank runs the operation, as well as the technology of the bank. It is not great,” said Rohit Taneja, Decentro co-founder and CEO, in an interview with TechCrunch, “This is basically the problem we solve.”
Taneja, who previously co-founded social payments platform Mypoolin, which was acquired by Cupertino-based financial services firm Wibmo and spent eight years in the fintech market, co-founded Decentro with Pratik Daukhane in 2020 — after personally experiencing all the issues he wanted to address . He counts Setu, owned by Cashfree and PineLabs, among the startup’s main competitors, but believes it differentiates between a “solution-driven enterprise client base” and a “superior” product experience.
The startup has already brought together more than 250 clients in the commerce and financial technology sectors. Some of these include Freo, Mobile Premier League, FamPay, CreditWise, Uni Cards, and BharatX.
Decentro, which has more than 40 people, offers products to allow businesses to create virtual accounts, business accounts and escrow accounts, enable payments and provide lending. The startup said that the products available comply with the latest regulations in the country.
Leading the Series A round by Decentro Rapyd Ventures, the investment arm of UK FinTech as a Service Giant, along with participation from Leonis VC and Uncorrelated Ventures. Also participating in the funding round were Indian angel investors including CRED founder Kunal Shah, co-founder and CEO of Groww, Lalit Keshr, co-founder and CEO of Gupshup, Perud Sheth, and former CBO of BharatPe Pratekk Agarwaal.
Taneja told TechCrunch that the startup aims to take advantage of the new funding to deepen its partnership with banks and go into categories including large corporations. It also plans to obtain licenses and launch in Singapore to eventually expand outside India.
“Building the innovation layer in India first gives Decentro a great base for building scalable innovations that can be scaled up as other emerging markets modernize their own infrastructure. Joel Yarbrough, Managing Director of Rapyd Ventures and Rapyd’s Vice President for Asia Pacific, said in a prepared statement: We are excited to support Decentro as it expands and expands.”
Prior to the last funding round, Decentro raised a total of $1.7 million in founding and angel rounds. The initial round, which closed in October 2020, included investments from Y Combinator and FundersClub.
Since then, the startup claims that its valuation has increased by 3.3 times and revenue has grown more than 35 times. However, Taneja did not reveal any details about the evaluation.
It added that Dcentro’s API transaction volumes have also grown 50-70% each quarter since early 2021, with an average of 70 million annual API transactions recorded over the past 12 months. The co-founder said the startup is also profitable.