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 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 [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" [IBS Intelligence, 2026].
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 [CB Insights].
The Backing of Rainmatter
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]. Zerodha's own wealth management platform, Coin, uses Blostem's infrastructure to offer fixed deposits [Blostem, 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. 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 [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].
Where the Model Faces Friction
Building a new financial network is a steep climb. The risks for Blostem include regulatory complexity regarding tokenization, the difficulty of convincing banks to allow assets to be digitally tokenized, and a competitive landscape attracting attention from other banking API providers.
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. The company has between 11 and 50 employees, suggesting it is in execution mode [Invstt].