After raising US $50 million from IIFL on May 2, 2021, Bengaluru-based neo banking company Open became the country’s 100th Unicorn. Existing investors such as Singapore’s national wealth fund Temasek, US hedge fund Tiger Global, and 3one4 Capital participated in the round.
The new fundraising round pushed Open’s valuation beyond US $1 billion.
New Products and Services:
The new strategic investment from Ola’s sponsor IIFL will help Open expand its SME lending product offerings. Currently, the business is preparing to launch three new solutions in the SME financing area. The following are the three new products:
Open Flo is a revenue-based financing solution for online retailers.
Open Settl is an early settlement credit product, and Open Capital is a working capital loan for SMEs.
In the following 12 months, the business claims to disburse US $1 billion in lending through these new lines of products.
About Open:
Open, founded in 2017 by Anish Achuthan, Ajeesh Achuthan, Mabel Chacko, and Deena Jacob, provides SMBs across the country with business banking, payments, and cost management services.
Nubank, Navi, CredAvenue, and Oxyzo, among others, are competing against the startup at the moment.
India’s whole fintech sector is expected to develop at a 31 percent compound annual growth rate (CAGR) to US $1 trillion by 2025. Lending is estimated to account for roughly 47% of this.
According to the firm, it has grown its customer base to 2.3 million in the last year and expects to reach 5 million in the following year. The business also plans to use the funds to improve its leadership team and grow its workforce from 500 to 1,000 employees over the next year.
The new round of funding comes about six months after the neo banking firm raised US $100 million in its last round. The development of Open’s Series C round of fundraising was initially reported by Inc42. Temasek, SBI Investment, Tiger Global, and 3one4 Capital were among the investors. The startup was valued at roughly US $600 million in financing.
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