Transcend, a US-based firm that focuses on de-risking collateral decision-making, has managed to close an oversubscribed $10 million Series A investment round that was led by Nyca Partners.
Transcend’s management noted that the company has seen significant growth as collateralized ventures or businesses look for more efficient ways to deploy cash and securities as part of their operations. Transcend claims that it has benefited from recent capital, liquidity and regulatory developments, including the uncleared margin rules for conducting bilateral derivatives trading.
These changes consistently need major upgrades in the capabilities and infrastructure of businesses. This includes being able to link siloed internal platforms and creating critical common capabilities, in order to continue offering competitive services in a compliant manner.
Established in 2013, Transcend claims that its customer base has more than doubled during the past couple years. The company reveals that it now works with 10 of the largest banks or financial institutions and brokerage companies. Transcend intends to use the capital raised to scale its line of products and services, including its existing sales infrastructure.
Bimal Kadikar, CEO, Transcend, stated:
“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.”
Hans Morris, managing partner at Nyca, said that his company was “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.” Morris added that Nyca is now convinced that Transcend’s solutions will offer significant benefits for financial service providers and will also help them “improve their competitiveness.”
As mentioned in a release, Transcend has over 75 workers on its payroll (globally). The company aims to addresses various regulatory and capital challenges that are present in the financial services sector. Transcend offers a user-friendly, SaaS-based or on-premises collateral and liquidity management platform.