The neobanking startup Open raised $ 100 million in its Series C round. In the round led by Temasek, Google and SBI Investment took part, in which the existing investors Tiger Global and 3one4 Capital participated.
Open plans to use the funding to further strengthen and accelerate its new product lines, the company said in a statement. It added that it will expand its base to 5 million SMEs and expand into global markets such as Southeast Asia, Europe and the US.
Open has raised the funds to a post-money valuation of approximately $ 500 million to 520 million, as per Trickypedia‘s estimates. It’s a more than three-fold increase in company valuation, which was $ 150 million for the year Series B round two years ago.
The four-year Open offers digital banking services such as current account services, credit cards, debit cards, payment transactions, accounting and expense management for startups and small and medium-sized enterprises (SMEs) in partnerships with banks.
In addition to opening new bank accounts, the company offers its existing account holders, among other things, its services such as expense and payroll accounting, payment gateway and invoicing. Open claims that it processes $ 20 billion in transactions annually and enables business payments for nearly 2 million SMBs currently.
The company has been operating in India for more than 4 years but has not yet had any significant income while also recording outstanding losses of nearly Rs. 51 billion.
Corresponding TrickypediaOperating income increased 2.7 times to just over Rs 7.6 lakhs for FY 20, while annual losses increased 6.7 times to over Rs 42.2 billion over the same period are. At the unit level, Open spent 670.4 rupees during the fiscal year ended March 2020 to generate a single rupee of operating income.
Among the neo banking platforms aimed at SMBs, Open competes directly with Chqbook and PayO, Razorpay X, and a few others.
A month ago Open raised a larger part ($ 62 million) that round, as a result of which the company’s promoters, including Anish Achuthan, Mabel Chacko, and Deena Jacob, owned approximately 25% of the company. After this round, the founders can dilute more shares.