SME neobank Open raises $100m in Series C funding round
SME-focused neobank start-up Open secures $100m in Series C funding at a $500m valuation
Neobank start-up Open, which offers banking services to small to medium enterprises (SMEs), has raised $100m (£73m) in Series C funding at a $500m valuation.
Open plans to use the fresh capital to expand its product line and work with more than five million SMEs by August 2022.
Early market adoption
The Bengaluru-based start-up was founded in 2017 by Anish Achuthan, Mabel Chacko, Ajeesh Achuthan, and Deena Jacob, and quickly became an early adopter of offering neobanking services to SMEs and start-ups in India.
Unlike traditional banks, neobanks – sometimes called challenger banks – offer digital-only banking platforms without a bricks-and-mortar presence.
Open has witnessed strong market growth since it first set foot into the world of fintech. In May 2018, it raised $2m in a seed round from Yes Bank and global venture capital firms, and by July of that same year, it had already acquired 3,000 businesses. By December 2018, Open had processed over $1bn in transactions.
CEO and co-founder Anish Achuthan said via Twitter that the start-up has ambitious growth plans as the “world’s fastest growing SME neobanking platform”.
"In the coming months, we look to expand into embedded finance and enterprise banking. By August 2022, we aim to cater to five million SMEs," he added.