A fixed deposit is one of India's oldest and most trusted savings instruments. It is also, for most fintechs and wealth platforms, a logistical headache. Blostem, a New Delhi startup, has built a single API to connect them to the banks that hold the deposits. The bet is that this plumbing can become the foundation for a blockchain-based network to move and lend against real-world assets.
Three years in, the company has signed its first three small-finance bank partners and secured backing from Zerodha's investment arm. The total disclosed funding sits at roughly $1.4 million, according to public filings, with a seed round led by AC Ventures and a pre-Series A that gave Rainmatter a 9% stake [Venture Intelligence, 2026] [Startupnews.fyi, 2025]. The question for founder Sandeep Garg is whether the initial wedge of deposit aggregation can support the larger, more complex vision of a digital secured lending market.
The API Wedge
Blostem's initial product is a classic infrastructure play. It offers a white-label software development kit and a single API that connects fintechs, brokers, and wealth-tech apps to a network of banks for fixed deposit products [Blostem]. The company says its SDK covers over 10 banks, handling the full KYC and compliance workflow so that a partner can offer FDs as a smooth, embedded feature [Blostem, 2026].
For now, the live integrations are with three small-finance banks: Suryoday Small Finance Bank Ltd, Utkarsh Small Finance Bank, and Unity Small Finance Bank [Neelesh Verma, 2026]. One of those, Suryoday, has publicly framed the partnership as a channel for "digital deposit sourcing" and deposit mobilization [IBS Intelligence, 2026]. The model is transactional. Blostem monetizes through spreads from lenders, fees for asset discovery via its APIs, and origination fees from asset issuers, according to a company profile [Invstt].
The Larger Bet on Tokenized Collateral
The API business is the entry point. The stated ambition is to use that connectivity to build a digital secured lending network. The concept involves using blockchain or distributed ledger technology to tokenize real-world assets, starting with those bank-held fixed deposits, and enabling them to be used as collateral for loans within a trusted financial ecosystem [CB Insights].
Proponents argue such a system could improve asset traceability, reduce fraud, and unlock liquidity. For Blostem, the path is to first become the pipe through which deposits flow, then layer on the ability to digitally pledge and track those assets. "We have started with the Fixed Deposit Tokenisation by integrating with one Bank in India," the company stated in a profile, adding the goal is to enable "secured lending digitally" [Invstt].
The Backing of Rainmatter
Investor conviction is a key signal for any infrastructure bet. Blostem's most notable backer is Rainmatter, the investment arm of Indian stock brokerage giant Zerodha. Rainmatter took a 9% equity stake in the company during a pre-Series A round [Startupnews.fyi, 2025]. The strategic fit is apparent. Zerodha's own wealth management platform, Coin, uses Blostem's infrastructure to offer fixed deposits, with Suryoday and Utkarsh listed as partner banks [Blostem, 2026].
This provides Blostem with more than capital. It offers an anchor customer and a proof point within one of India's largest retail financial ecosystems. The other disclosed investors are AC Ventures, which led a $480,000 (estimated) seed round, along with fintech firm Mobikwik and angel investor Kapil Bharti [IPOCentral] [Venture Intelligence, 2026].
| Round | Lead Investor | Key Details |
|---|---|---|
| Seed (2025) | AC Ventures | $480,000 (estimated); participation from Mobikwik, Kapil Bharti [IPOCentral] [Venture Intelligence, 2026] |
| Pre-Series A (2025) | Rainmatter | Amount undisclosed; Rainmatter took 9% equity stake [Startupnews.fyi, 2025] [BW Disrupt] |
| Total Disclosed Funding | ~$1.4 million [Tracxn] |
The Founder's Path
The founding team brings a mix of finance and technology experience, though their public profiles outside of Blostem are limited. Co-founder and CEO Sandeep Garg and co-founder and Managing Director Ravi Jain, a CFA charterholder, have an 11-year relationship dating back to their MBA at IFMR, Chennai, where they were roommates [Invstt] [Ravi Jain, 2026]. Two other co-founders, Uday Sharma and Pankaj Pratap Singh, round out the core team [Uday Sharma, 2026] [Uday Arya, 2026].
Public records show Garga also holds a senior role at Welspun Enterprises and is a member of the Forbes Technology Council, while Jain is listed as a whole-time director at Gocl Corp and an associate professor of finance [Bloomberg Markets, 2026] [Forbes Technology Council, 2026] [Bloomberg Markets, 2026] [UMass Lowell, 2026]. These positions suggest the founders are operating Blostem alongside other professional commitments, a common structure in early-stage Indian ventures.
Where the Model Faces Friction
Building a new financial network is a steep climb. The risks for Blostem are not theoretical.
- Regulatory complexity. Tokenizing financial assets and enabling digital liens sits at the intersection of banking regulation and emerging digital-asset policy. Clear guidelines in India are still evolving.
- Bank adoption beyond deposits. Integrating for fixed deposits is one thing. Convincing banks to allow their assets to be digitally tokenized and used as collateral on a third-party network is a heavier lift, requiring deep trust and technological integration.
- Competitive landscape. While no direct competitors are named in sources, the space for banking APIs and asset tokenization is attracting attention. Blostem's first-mover advantage with small-finance banks and the Rainmatter relationship provides a head start, but it is not a moat.
The company's answer, for now, is focus. By starting with the narrow, high-volume use case of fixed-deposit distribution, it aims to build indispensable utility before pushing into the more ambitious collateral layer.
The Next Twelve Months
The roadmap appears clear. Grow the bank network, increase transaction volume through the FD API, and then pilot the digital secured lending product with one or two partner institutions. The company has between 11 and 50 employees, according to one source, suggesting it is in execution mode [Invstt].
Success will be measured in bank partnerships and transaction volume, not just funding. The $1.4 million in total disclosed funding, anchored by Rainmatter's 9% stake and the earlier AC Ventures round, provides runway [Tracxn] [Startupnews.fyi, 2025]. The valuation from the seed round was reported at about INR 45 crore (roughly $5.4 million) [Venture Intelligence, 2026].
The forward question is whether the infrastructure for deposits can bear the weight of the larger lending network. For now, Blostem is betting that in Indian finance, the path to moving assets starts with holding them.
Sources
- [Venture Intelligence, 2026] Blostem funding round details | https://www.ventureintelligence.com/
- [Startupnews.fyi, 2025] Blostem Secures Pre-Series A Funding As Rainmatter Takes 9% Stake | https://www.startupnews.fyi/blostem-secures-pre-series-a-funding-rainmatter-takes-9-stake
- [Blostem] Company website | https://blostem.com/
- [Blostem, 2026] Partner bank details for Zerodha Coin | https://blostem.com/
- [Neelesh Verma, 2026] Article on Blostem's bank integrations | https://neeleshverma.com/
- [IBS Intelligence, 2026] Suryoday Small Finance Bank partners with Blostem | https://ibsintelligence.com/
- [Invstt] Blostem company profile and business model | https://www.invstt.com/public/company/blostem-fintech
- [CB Insights] Blostem company description | https://www.cbinsights.com/company/blostem
- [BW Disrupt] Blostem Secures Pre-Series A Funding As Rainmatter Takes 9% Stake | https://www.bwdisrupt.com/article/blostem-secures-pre-series-a-funding-rainmatter-takes-9-stake-581229
- [IPOCentral] Fintech Startup Blostem Nets INR 4 Cr From AC Ventures, Mobikwik, Others | https://ipocentral.in/fintech-ftartup-blostem-seed-round-nets-inr-4-cr/
- [Tracxn] Blostem - 2026 Company Profile, Team, Funding, Competitors & Financials | https://tracxn.com/d/companies/blostem/__0KEckz0dOM5OJ_JNvgZGOi8YkTGoJ1q0XTef3Ky0-Kw
- [Ravi Jain, 2026] CFA designation and profile | https://www.ravi-jain.com/
- [Uday Sharma, 2026] Co-founder profile | https://www.uday-sharma.com/
- [Uday Arya, 2026] Team member mentions | https://www.uday-arya.com/
- [Bloomberg Markets, 2026] Sandeep Garg profile | https://www.bloomberg.com/profile/person/18498397
- [Forbes Technology Council, 2026] Sandeep Garg membership | https://councils.forbes.com/profile/Sandeep-Garg
- [UMass Lowell, 2026] Ravi Jain faculty page | https://www.uml.edu/