Open Acquires Consumer Neo-Banking Platform Finin in $10M Deal
Open Financial Technologies, a neo-banking platform for small businesses, has acquired Finin, a consumer neo-banking platform, for $10 million in cash and stock.
The acquisition, according to Open, would extend Open’s cloud-native enterprise solution, BankingStack. The company has provided SME digital banking solutions to 17 banks, as well as the recently announced Zwitch no-code integrated financial platform, which claims to enable fintech and non-fintech companies to develop digital banking services.
BankingStack provides a fintech operating platform for financial institutions to launch digital banking products, and with the integration of Finin, BankingStack will be able to provide financial institutions with personal and business banking solutions.
The acquisition will also allow SMBs to leverage the neo-banking Open SME platform to offer employee salary accounts, as well as an integrated payroll module, the Google-backed company said in a statement.
Commenting on the acquisition, Anish Achuthan, co-founder and CEO of Open said: “The acquisition of Finin adds strategic value to Open’s offering in cloud-native corporate banking and integrated finance.” He further stated that with the acquisition, Open will be able to offer comprehensive business and consumer banking offerings to banks aimed at enhancing their customers’ digital banking experiences.
Suman Gandham, co-founder and CEO of Finin, said in a statement: “The result of a consumer-oriented neo-banking platform working hand-in-hand with a B2B neo-banking platform is going to be exemplary, as we will be able to bring a lot of value to Open SMEs wishing to open salary accounts for employees, explain the rails consumer banking to fintech using Open’s integrated Zwitch financial platform, and also provides added value for banks wishing to launch digital banking propositions using the native digital banking operating system of Open Banking Stack.
Finin, founded by Suman Gandham and Sudheer Maram in 2019, is backed by Archana Priyadarshini and Unicorn India Ventures. The startup is a consumer-centric neo-banking platform that offers a savings account for its customers to save and invest their money. It raised an undisclosed sum in a pre-Series A funding round led by Unicorn India, a start-up venture capital firm, in June last year to accelerate its process of marketing, acquisition customers and recruitment. The round also saw participation from Astir Ventures and PointOne Capital.
Open Financial Technologies, on the other hand, raised a total of $140.8 million, with the latest Series C funding round of $100 million closing in September this year. The round was led by Singapore-based investment management firm Temasek Holdings, alongside Google and SBI Investment, valuing the startup at around $500 million.
The Bengaluru-based neo-banking startup, founded in 2017 by Ajeesh Achuthan, Anish Achuthan, Mabel Chacko and Deena Jacob. Last month, it announced a do-it-yourself (DIY) fintech services platform Zwitch for fintechs and businesses. Open claims to support over 2 million SMBs and process over $24 billion in annualized transactions.
Open faces fierce competition from other neo-banking startups, including FamPay, Flobiz, Jupiter, Niyo and Sequoia-backed Fi, among others. According to reports, Jupiter, which completed its $44 million Series B funding round in August this year, is in talks to raise another $100 million round.