[Funding alert] Fintech startup Open becomes India's 100th unicorn, raises $50M in Series D led by IIFL
SME-focused neobanking platform IIFL, along with existing investors Temasek Holdings, Tiger Global Management, and .on Monday announced $50 million in its Series D round from
To date, the Bengaluru-based startup has raised over $140 million in funding, backed by global investors — including Temasek, Google, Visa, Tiger Global, Beenext, Recruit Strategic Partners, 3one4 Capital, Speedinvest, Tanglin Venture Partner Advisors, Angellist, and Unicorn India Ventures, to name a few.
Within six months from raising its Series C round of Rs 735 crore ($100 million) led by Temasek, the startup bagged its Series D round — at a valuation of $1 billion — making it India's 100th unicorn.
The fintech platform will use the fund to accelerate its existing product lines — Zwitch (embedded finance platform) and BankingStack (enterprise banking solution for banks), to drive global expansion, and reach over five million customers within the next year.
Open will also use the capital to strengthen its leadership team, and increase its employee base from 500 to 1000 within the year.
"India Hits A Century In Style! Bengaluru-based startup becomes country's 100th Unicorn. India = Ideas + Innovation + Investments," Piyush Goyal, Union Minister for Commerce and Industry tweeted.
Founded in 2017, Open has built Asia’s first digital banking platform for SMEs, startups, and freelancers, and has increased its customer base to 2.3 million customers in the last 12 months.
The investment from IIFL will help Open accelerate its new product offering on SME lending as the platform is gearing up for the launch of three new products to enhance the capital needs of SMEs besides its existing SME credit card offerings.
The new products include Open Flo — an innovative revenue-based financing product for ecommerce businesses; Open Settl — an early settlement credit offering; and Open Capital — a working capital lending offering for SMEs.
At present, the fintech unicorn is targeting to disburse $1 billion in lending through the new suite of products on the platform in the next 12 months.
Speaking on the development, Anish Achuthan, Co-founder and CEO, Open, said,
“We are excited to partner with IIFL and existing investors Tiger Global, Temasek, and 3one4 Capital for our Series D round. We see a lot of synergies with IIFL, especially on leveraging the lending book, as we are getting ready to launch innovative products like revenue-based financing, early settlement, working capital loan, and business credit cards to SMEs on our platform.”
Commenting on this, R Venkatraman, Co-promoter, IIFL Group, and Chairman, IIFL Securities, said,
“We are delighted to be part of the most exciting neobanking venture in India. Indian MSMEs banking and credit delivery can be revolutionised by Open. We look forward to strengthening the partnership in multiple ways.”