Neo-banking platform Open raises $ 100 million from Temasek
The neo-banking platform, Open, which focuses on small and medium-sized enterprises (SMEs), has raised $ 100 million from Singapore-based investment giant Temasek. The funding round also saw the participation of tech giant Google and SBI Investment, the asset management arm of Tokyo-based financial services firm SBI Holding. Existing investors Tiger Global and 3one4 Capital also participated in the round.
Open said it plans to use finance to further strengthen and accelerate its new product lines —- Zwitch, its integrated finance platform, and BankingStack, the cloud-native banking platform for SMEs to financial institutions which is currently deployed in more than 15 banks in India. Over the next year, Open will expand its base to 5 million SMEs and expand to global markets such as Southeast Asia, Europe and the United States.
“Over the past four years, we have grown steadily to become the fastest growing neo-banking platform for SMEs in the world. Our product offerings have helped nearly 2 million SMEs in the Indian market and we are just getting started. We are looking to expand our product line in the coming months in the area of integrated finance and corporate banking. We are also looking to meet the needs of more than 5 million SMEs by August 2022, ”said Anish Achuthan, CEO of Open, in a statement.
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Open is one of the many neo-banking platforms, which have emerged from India in recent years, to help banks, non-bank financial companies to digitalize their services and provide them with cutting-edge fintech solutions. The SME segment in India, on the other hand, is a huge market but one where banking solutions are still executed in the traditional way and have an untapped opportunity.
Pranav Pai, Founding Partner and CIO of 3one4 Capital, said the Open team has combined deep domain expertise and product-oriented rigor to deploy a comprehensive solution that puts SMEs at the center of a world of business. ‘innovation. “This platform has set the standard for business banking services and will take this comprehensive approach into new adjacencies and geographies. We are delighted to continue our partnership as Open evolves into a global fintech innovation engine, ”he said.
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Open was founded in 2017 by serial entrepreneurs Anish Achuthan, Mabel Chacko and Ajeesh Achuthan, as well as former CFO of TaxiforSure, Deena Jacob. The startup claims to be one of the world’s fastest growing SME-focused neo-banking platforms, powering nearly 20,000,000 SMEs, processing over $ 20 billion in transactions per year, and claims to add 90,000 new SMEs every month.
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