Blostem raises seed round led by AC Ventures

Blostem, a  B2B infrastructure platform for fixed deposit (FD) distribution, has secured fresh seed funding from AC Ventures. This latest round adds to backing from Mobikwik and Kapil Bharti (co-founder, Delhivery), bringing the total seed funding to Rs 4 crore and valuing the startup at about Rs 45 crore.

The fresh funds will be channeled towards strengthening its FD offering, scaling up FD transaction volumes across partner platforms, and expanding into other banking, investment and savings products, Blostem said in a press release.

Co-founded in Sept. 2021 by Ravi Jain, Sandeep Garg, Uday Sharma and Pankaj Pratap Singh, Blostem builds the infrastructure & experience layer for fixed deposit distribution in India. Its plug-and-play infrastructure enables digital platforms — including brokers, payment apps, and wealth-tech players — to offer fully digital FDs from multiple banks & NBFCs through a single integration. The startup says that its platform is already being used by leading players like Mobikwik, Upstox and centricity wealth.

The Delhi-based startup eliminates the need for fragmented integrations and multiple partnerships. B2C platforms can offer fixed deposits from multiple banks and NBFCs through a single integration — without having to partner with each issuer individually. Likewise, banks and NBFCs can distribute their FDs across a wide network of B2C platforms by integrating just once with its platform. 

“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.

Currently, Blostem claims to have  partnership with around 10 Banks & NBFCs for the Fixed deposit product and over 30 B2C platforms have signed up for using the platform . It aspires to command more than 40% of the digital FD volumes through its ecosystem.