The neo-banking platform for SMEs Open buys Finin for $ 10 million in cash and stock

Open, the SME neo-banking platform announced on Tuesday the acquisition of the consumer neo-banking platform Finin for $ 10 million in a cash and equity deal.

The acquisition will strengthen the cloud-native enterprise offering of Open BankingStack through which it has deployed digital banking solutions for SMEs for 17 banks. The deal will also provide a boost to the company’s recently launched code-less integrated financial platform, Zwitch, through which it enables fintechs and non-fintechs to launch innovative digital banking services, the company said. .

“The acquisition of Finin adds strategic value to Open’s offering in corporate banking and cloud-native integrated finance. Today, thanks to BankingStack, our cloud-native corporate banking offering, Open powers more than 15 banks in India and 2 banks in South East Asia, mainly in the area of ​​merchant banking. With the addition of Finin, Open will be able to offer comprehensive banking propositions to businesses and consumers to banks looking to enhance digital banking experiences for their customers, ”said Anish Achuthan, Co-Founder and CEO of Open Financial Technologies.

Finin was the first consumer neo-banking platform to be launched in India in 2019. Founded by Suman Gandham and Sudheer Maram, Finin was backed by Unicorn India Ventures and Archana Priyadarshini, and offers a savings account that enables for consumers to save and invest their money. .

Created in 2017, Open offers a neo-banking platform that brings together all the tools used by small businesses and integrates it into the business current account. The Open platform now powers nearly 2 million SMEs and processes more than $ 24 billion in annualized transactions. The platform also adds over 100,000 SMEs each month, making it the fastest growing SME-focused neo-banking platform in the world.

Suman Gandham, Co-Founder and CEO of Finin, added: “When we first launched Finin, I promised my team that we would make a mark in the fintech industry and show consumers Indians what the neo-bank can really do for them. Now, with the acquisition by Open, I have absolutely no doubts that we are accelerating towards this goal. “

He added: “The result of a neo-banking platform aimed at consumers working hand in hand with a B2B neo-banking platform will be exemplary because we will be able to add a lot of value to the SMEs of Open who wish to open. salary accounts for employees, exposing consumer bank rails to fintechs using Open Zwitch’s integrated funding platform, and also adding value to banks wishing to launch digital banking proposals at l using Open’s native digital banking operating system, BankingStack.

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Michael C. Sumner