Indian Economy News

Open raises series D funding from IIFL, existing investors; becomes unicorn

Neobanking fintech Open launched its series D investment round, led by IIFL, and joined by its current investors Temasek, Tiger Global, and 3one4 Capital. Open has already reached a valuation of US$ 1 billion as a result of this round. At least three to four unicorns were added per month in 2021, bringing the total number of unicorns to 44.

In the previous year, Open has grown its user base to 2.3 million, making it Asia's first digital banking platform for SMEs, startups, and freelancers. Apart from its existing SME credit card offers, the strategic investment from IIFL will assist Open speed up its new product offering on SME financing, as the platform prepares to launch three new products aimed at increasing the capital needs of SMEs: Open Flo, a revenue-based financing product for online enterprises; Open Settl, an early settlement credit offering; and Open Capital, a working capital lending product for SMEs.

The money will also help Open expand its existing product lines, such as Zwitch (an embedded finance platform) and BankingStack (an enterprise banking solution for banks) and reach over 5 million clients in the next year. The funds will also be used to improve the leadership team and grow the workforce from 500 to 1000 employees within a year.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.