B2B infrastructure platform Blostem raised Seed funding from AC Ventures

AC Ventures has provided new seed funding to Blostem, a B2B infrastructure platform for the distribution of fixed deposits (FDs). With the support of Mobikwik and Delhivery co-founder Kapil Bharti, this most recent round brings the total seed funding to Rs 4 crore, with the startup valued at approximately Rs 45 crore.

According to a press release from Blostem, the new funding will be used to improve its FD offering, increase the volume of FD transactions across partner platforms, and diversify into other banking, investment, and savings products.

In September 2021, Ravi Jain, Sandeep Garg, Uday Sharma, and Pankaj Pratap Singh co-founded Blostem, which creates the experience layer and infrastructure for the distribution of fixed deposits in India. Through a single integration, digital platforms such as brokers, payment apps, and wealth-tech companies can offer fully digital FDs from several banks and NBFCs thanks to its plug-and-play infrastructure. The startup claims that well-known companies like Mobikwik, Upstox, and Centricity Wealth are already using its platform.

The startup from Delhi does away with the necessity of numerous partnerships and disjointed integrations. Without having to collaborate with each issuer separately, B2C platforms can provide fixed deposits from a number of banks and NBFCs via a single integration.

Similarly, banks and NBFCs only need to integrate their platform once to distribute their FDs across a vast network of B2C platforms.

“Fixed deposits have long been one of the most trusted investment options in India, but access has largely remained within traditional banking ecosystems. At Blostem, our vision is to make fixed deposits — and eventually other banking products — available on every digital platform in India, through a single, compliant, and seamless infrastructure & experience layer,” said Ravi Jain, co-founder and MD of Blostem.

According to Blostem, more than 30 B2C platforms have registered to use the platform, and the company currently has partnerships with about ten banks and NBFCs for the fixed deposit product. Through its ecosystem, it hopes to control over 40% of the digital FD volumes.