Open Funding: Neobanking Startup Open raises $100 million from Temasek, Google, and others
A person familiar with the matter said that fundraising would be closed in the coming weeks.
ET first reported in June that strategic players like Google and Visa were
In talks with the company for the investment round and that the sovereign wealth fund is likely to lead the round.
After that funding, Open is now worth $500 million, compared to about $150 million in a previous funding round. Existing investors in Open Tiger Global and 3one4 Capital also participated in this round.
Anish Akuthan, co-founder and CEO of Open, told ET that he plans to use the new funding to boost and accelerate new product lines – Zwitch, the embedded finance platform and BankingStack, the cloud-based SMB banking platform for financial institutions that is currently deployed in more than 15 countries. bank in India.
“We look forward to expanding our product range in the coming months in embedded finance and corporate banking. We also look forward to serving the needs of more than 5 million small and medium-sized businesses by August 2022.” The company, which is adding 90,000 new SMEs to its platform every month, plans to expand into global markets such as Southeast Asia, Europe and the United States.
New products are also among the reasons that prompted strategic investors to join the funding round. Before funding, Open has seen nearly tenfold growth over the past 18 months as the pandemic has driven the adoption of digital small businesses.
Open will also use the new capital to strengthen its leadership team and plans to employ around 800 people across functions such as technology, products and teams.
Started in 2017, Open offers its services New banking platform It integrates all the tools used by small businesses and integrates them with a business checking account. “We now have around 2 million SMEs on our platform and process more than $20 billion in annual transactions,” Achuthan said.
Open competes with other new banks such as Jupiter, RazorpayX and Niyo. Amazon and Paytm are also making nascent forays into this field.
New Banks, The Next Evolution of Banks