India has 100 unicorns now. Bengaluru-based neobank Open Bank entered the popular group on Monday with a new round of investments, it was said.
The five-year-old startup did not disclose how much it invested in Series D, but sources said it was close to $ 50 million. The new round, valued at Open $ 1 billion, was led by Mumbai-based IIFL, both of them said. Former fans of Tiger Global, Temasek and 3one4 Capital also took part in the tour.
Open operates a non-profit bank that offers small and medium-sized businesses as well as businesses with almost all the features of a bank with additional tools to serve the needs of the business. Millions of small and medium-sized businesses in India are struggling to maintain multiple bank accounts, calculate their daily expenses, and withdraw payments to employees.
The startup, which is affiliated with more than a dozen top banks in India, is used by more than 2.3 million businesses, she said. An open system of more than $ 30 billion worth of transactions annually.
Over the past three months, Open has expanded its offering. The startup now offers its technology to neobanking banks with a white-collar arrangement, then selling it to their customers.
Open growth in recent years, which has led to several other start-up companies expanding and adding to this segment, has changed the relationship between banks and fintechs. A few years ago, most banks in India were suspicious of neobanks and it was very difficult for any of them to be convinced of the partnership, the founders of fintech told TechCrunch.
“Neobank Banks is gaining a reputation for investing in banks or banking services like a thousand years and SMEs. Fi, and Jupiter, “Jefferies analysts wrote in a report last year.
“In fact, many Indian fintechs are planning to expand 1-2 devices now to become neobank in more than 3-5 years. The existing banks / NBFC are collaborating with them. Fundraising is time left, ”They added.
Open said it is looking to launch three new products – Flo-based revenue streams, Settl’s prepaid settlement card and capital lending capital – in the coming months to expand what it offers to its customers. The startup aims to repay a $ 1 billion loan through its new product over the next 12 months, she said.
“We are excited to partner with IIFL and current investors Tiger Global, Temasek and 3one4 Capital in our series D. based on, initial settlement, labor capital loans and business credit cards for SMEs in our site, ”said Anish Achuthan. ., founder and chief executive of Open, statement issued.
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