Open, a startup focused on neo-banking, recently announced that they raised ₹210 crores ($30 million) in a second round of funding. The Series B round, led by Tiger Global Management, saw the funds being set aside for scaling, launching more products and value-added services.
Tanglin Venture Partner Advisors were also a part of the round, along with existing investors 3one4 Capital, Speedinvest, BetterCapital AngelList Syndicate
Analytics India Magazine got in touch with Anish Achuthan, the CEO of Open, who stated, “Being one of the fastest growing SME neo-banking platforms in the world, the key is to match the ever-increasing customer demand for seamless financial management.”
The startup is gearing up to launch a few new products, in order to cement their place in the small-to-medium enterprise market. The new products are set to not only bolster their existing infrastructure but also provide new services to their clients.
The products are Open+, a business credit card for startups, and Layer, a bank account targeted at developers. This is a novel product that allows the account to be programmed by developers through the API banking suite.
Open+ comes with an integrated expense management platform and will offer credit to startups. Moreover, businesses can also issue these cards to their employees in a seamless fashion while keeping up to date with spending.
The CEO said on the move, “This funding will help us accelerate our target of simplifying business banking for more than 1 million businesses at a greater pace and also launching new products like the Open+ card and Layer that will enhance our value proposition for small businesses.”
The startup achieved record-setting growth in the SME market after being founded in 2017. By creating a novel solution known as neo-banking for the Indian market, Open was able to capitalise on the many unbanked startups in India.
The company provides tools that allow startups to automate finances and manage business account transactions. The platform reportedly has over 1 lakh SMEs and processes ₹35,000 crores every month.