The round led by Temasek was joined by Google and SBI Investment and saw participation from existing investors Tiger Global and 3one4 Capital
- Open plans to use the funds to strengthen its leadership in the SME neo-banking space taking the total SME base from present 2 million to 5 million in India and expand its services to South East Asia.
- The funding will be used to further strengthen and accelerate its new product lines – Embedded finance platform Zwitch and BankingStack, the cloud native SME banking platform for financial institutions which is currently deployed at over 15 Banks in India.
- The funds will be used to strengthen the leadership team and plans to hire over 800 people across technology, product and business teams.
- Open is the fastest growing SME neo-banking platform globally processing $20 billion in transactions annually and powering business payments for close to 2 million SMEs currently.
Bangalore: Open, an SME-focused neo-banking platform, has raised INR 735 crores (USD 100 million) in a Series C round. The funding was led by Temasek and saw participation from Google and SBI Investment, one of Japan’s leading venture capital firms. Existing investors Tiger Global and 3one4 Capital also participated in the round.
Open plans to use the funding to further strengthen and accelerate its new product lines – Zwitch, its embedded finance platform and BankingStack, the cloud native SME banking platform for financial institutions which is currently deployed at over 15 Banks in India. Over the next one year, Open will expand its base to 5 million SMEs and expand to global markets like South East Asia, Europe and US.
Founded in 2017, Open offers a neo-banking platform that integrates all the tools used by small businesses and integrates it with the business current account. The Open platform today powers close to 2 million SMEs and processes over USD 20 billion in annualized transactions. The platform also adds over 90,000 SMEs every month, making it the fastest growing SME-focused neo-banking platform globally.
Commenting on the funding, Anish Achuthan, CEO, Open said, “Over the last 4 years, we’ve grown from strength to strength to be the fastest growing SME neo-banking platform globally. Our product offerings have helped nearly 2 million SMEs in the Indian market and we’re just getting started. We look to expand our product range in the coming months in embedded finance and enterprise banking. We also look to cater to over 5 million SMEs by August 2022.”
Pranav Pai, Founding Partner and CIO of 3one4 Capital, said, “The team at Open have combined deep domain expertise and product-focused rigor to deploy a full-stack solution that places SMEs at the center of a universe of innovation. This platform has set the standard for business banking and will take this full stack approach into new adjacencies and geographies. We are excited to continue our partnership as Open scales into a global fintech innovation engine.”