Open, a Bengaluru-based SME-focused neo-banking platform, has secured $ 100 million in a Series C funding round led by Temasek, with participation from Google and SBI Investment. The cycle also saw the participation of existing investors Tiger Global Management and 3one4 Capital. The round was advised by Avendus Capital valuing the startup at around $ 500 million.
The new infusion will be used to strengthen its dominance in the neo-banking sector of SMEs, expand its customer base from 2 million to 5 million in India and extend its services to South East Asia. . The funds will also be incorporated to enhance and accelerate the company’s new product offerings, including Zwitch, an integrated finance platform, and Bankingstack, a cloud-native SME banking platform for financial institutions that are now employed. by more than 15 banks in India, according to the statement.
Open also said the funds would be mobilized to strengthen the leadership team and hire around 800 professionals in the technology, product and sales teams. Currently, the company handles $ 20 billion in transactions per year and facilitates trade payments for approximately 2 million SMEs.
Temasek, 3one4 Capital, Google and Tiger Global have already invested around Rs 456 crore ($ 63 million), according to documents filed by MCA. Open will get the remaining funds ($ 37 million) from SoftBank Investment Advisers in the coming days, according to a source familiar with the matter. Temasek invested in Rs 254 crore, Tiger Global Management (Internet Fund V) invested in Rs 54 crore, 3One4 paid Rs 35.7 crore and Google injected Rs 108 crore into the cycle, according to documents filed by MCA.
Open, which was founded in 2017 by Ajeesh Achuthan, Anish Achuthan, Mabel Chacko and Deena Jacob, provides a neo-banking platform that integrates all the resources used by small businesses and connects them to their business checking account. Each month, the platform claims to attract around 90,000 SMEs, making it the fastest growing SME-focused neo-banking platform in the world.
Anish Achuthan, co-founder and CEO of Open, commented on the development, saying: âOver the past four years, we have grown steadily to become the fastest growing neo-banking platform for SMEs in the world. We plan to expand our product line in the coming months in the areas of integrated finance and corporate banking. We are also looking to meet the needs of more than 5 million SMEs by August 2022. â
The company’s operating income increased 2.7 times to just over Rs 7.6 Lakhs reported in fiscal year 20, but the annual losses increased 6.7 times to exceed 42, Rs 2 crore over the same period. In the fiscal year which ended in March 2020, Open spent around Rs 670.4 to generate a single rupee in operating income.
Open competes directly with Chqbook and PayO, Razorpay X, among other neo-banking startups that target SMEs.