Transcend, a leader in business optimization for financial firms, has closed its Series A financing, limiting the raise to $10 million after over-subscription by potential investors. The financing round was led by Nyca Partners, a leading fintech venture capital firm, with support from a major global custodian bank. Proceeds will be used to rapidly scale product and sales infrastructure to meet growing demand from Transcend’s client base, which has more than doubled in the past two years to include 10 of the world’s largest banks and brokerage firms.
Transcend’s rapid growth corresponds to a sharp increase in collateralized businesses looking to more efficiently deploy cash and securities across their firms. This is particularly important given a series of recent capital, liquidity and regulatory drivers, such as the uncleared margin rules for bilateral derivatives trading. These changes require significant upgrades in the capabilities and infrastructure of many firms, such as connecting siloed internal platforms and developing critical common capabilities, to remain competitive and compliant.
“Our investors and clients share our vision for industry transformation,” said Bimal Kadikar, CEO of Transcend. “As a team, we are not alone in believing that analytics, optimization and automation can provide a significant competitive advantage for firms’ funding and liquidity challenges. This investment will enable us to accelerate our global ambition and target our solutions across a range of sell-side and buy-side stakeholders.”
“We’ve been impressed by the strategic thinking of Bimal and the Transcend team for many years, especially in developing solutions for complex business areas like collateral and funding optimization. We are convinced that Transcend’s innovative solutions will deliver large-scale benefits for financial firms and will help them improve their competitiveness.” said Hans Morris, managing partner at Nyca.
Transcend was formed in 2013 by seasoned financial executives to make collateral and liquidity management at banks and counterparties more profitable and efficient. Its scalable technology works with a firm’s existing infrastructure to address specific business-level or enterprise-wide challenges.