Neobanking fintech Open Financial Technologies Pvt Ltd has raised $50 million in its series D funding round from IIFL along with existing investors Temasek, Tiger Global, and 3one4 Capital.
With this funding round, the company is now valued at $1 billion and has entered India’s 100th Unicorn Club.
With this strategic investment, Ola’s backed IIFL will help Open to accelerate its product offering on SME loans.
The Bengaluru-based Open was founded in 2017 by Anish Achuthan, Ajeesh Achuthan, Mabel Chacko, and Deena Jacob, It provides business banking, payment and expense management services to SMBs across the country.
“We are excited to partner with IIFL and existing investors Tiger Global, Temasek, and 3one4 Capital for our series D round. We see a lot of synergies with IIFL, especially on leveraging the lending book, as we are getting ready to launch innovative products like revenue-based financing, early settlement, working capital loan and business credit cards to SMEs on our platform”, said, Anish Achuthan, Co-founder and CEO of Open.
Since its inception, the fintech startup has raised $190 million to date and claims to have raised $1 billion in lending over the next 12 months through its new lines of products(Open Flo, Open Settl and Open Capital).
“We are delighted to be part of the most exciting neobanking venture in India. Indian MSMEs’ banking and credit delivery can be revolutionised by Open. We look forward to strengthening the partnership in multiple ways”, said, R Venkatraman, Co-promoter, IIFL Group & Chairman, IIFL Securities.
Open acquired consumer neobanking platform Finin in December 2021. Last year in October, Small and medium enterprise (SME) focused neo-bank, Open had raised $100 million as a part of its Series C round from Singapore-based Temasek.
Open is Asia’s first neobanking platform for SMEs and startups. They are on a mission to deliver a truly seamless business banking experience and make managing finances a breeze. Powered by partner banks, Open offers a business account that let’s small business owners collect payments, auto-reconcile them, and make seamless payouts. They don’t stop with just that – they also offer additional tools designed exclusively for businesses, such as an integrated payment gateway, automated accounting and expense management.
Open has been revolutionizing the way SMEs and startups bank since 2017 and we currently serve more than 15,00,000 SMEs and process US $24 Billion in transactions annually. The platform onboards 50,000 new SMEs and startups every month.