Startups have now become a primary source of growth and employment in India, with various leading venture firms now eyeing the emerging startup ecosystem. Following cue, Bengaluru-based startup Open has reportedly raised USD 100 million in a Series C funding round led by Temasek, Google, and Japanese venture capital company SBI Investment.
The round also saw participation from existing investors 3one4 Capital and Tiger Global. The firm was previously backed by investors such as Tanglin Venture Partners, Speedinvest, Beenext, Unicorn India Ventures, Recruit Strategic Partners, and AngelList.
For the uninitiated, Open is a four-year-old neo banking platform, that caters to SMEs and is currently valued at USD 500 million. The company offers small and medium-sized businesses nearly all features of a full-fledged bank, along with additional tools to fulfill their business requirements.
Open intends to use the additional capital to further its expansion. Over the next year, it expects to grow its SME base to five million, from the present one million, as well as expand into other regions such as Europe, Southeast Asia, and the United States. It will also use the capital to improve its leadership team and new product lines.
Anish Achuthan, Founder and CEO of Open, said the company now offers its neo banking technology to banks under a white-label licensing agreement, which then sells it to their customers.
The firm recognizes that they have the relevant infrastructure to assist other fintech companies in developing their card issuing and other digital bank services, added Achuthan. This unit of Open's business service is known as Zwitch.
Notably, over 2 million businesses in India are known to use the startup's platform, which serves more than a dozen top banks. Open is already considering another financing round, and investors like Visa are expected to participate.
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