“This is a big milestone for us, the team is in super thrilled mood,” when asked would this mean the next milestone would be IPO, she said, “IPO is certainly on card but still early,” said Mabel Chacko, co-founder and COO of Open, in a call with Business Standard.
Neobanking fintech Open on Monday declared its series D funding round from IIFL alongside existing investors Temasek, Tiger Global and 3one4 Capital. With this round, Open is presently esteemed at $1 billion. After a gap of close to 30 days, India’s startup ecosystem on Monday added another unicorn. Beginning around 2021 the speed of startups becoming unicorn’s has really gone up. The year 2021 on an average saw no less than three to four unicorns being added consistently taking the list of unicorns to 44, as indicated by Venture Intelligence data. Open has fabricated Asia’s first digital banking platform for SMEs, startups, and freelancers and has expanded its client base to 2.3 million clients over the most recent a year.
The strategic investment from IIFL will help Open accelerate its new product offering on SME lending, as the platform is gearing up for the launch of three new products aimed at enhancing the capital needs of SMEs apart from its existing SME credit card offerings.
The new products include Open Flo – a revenue-based financing product for ecommerce businesses, Open Settl – early settlement credit offering and Open Capital –working capital lending offering for SMEs. Open is targeting to disburse $1 billion in lending through the new suite of products on the platform in the next 12 months.
The funding will also help Open accelerate its existing product lines Zwitch (embedded finance platform) and BankingStack (enterprise banking solution for banks), drive global expansion and reach over 5 million customers within the next one year. The funds will also be used to strengthen the leadership team and increase the employee base from 500 to 1000 within the year.
Anish Achuthan, co-founder & CEO, Open said, “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.”
R Venkatraman, Co-promoter, IIFL Group & Chairman, IIFL Securities said, “We are delighted to be part of the most exciting neobanking venture in India. Indian MSMEs banking and credit delivery can be revolutionized by Open. We look forward to strengthening the partnership in multiple ways.”
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