Neobank Open Becomes 100th Unicorn Of India, Raises $50 Mn From IIFL

Bengaluru-based neobanking startup Open becomes the country’s 100th unicorn after raising $50 Mn from IIFL. The round also saw participation from its existing investors including Singapore’s sovereign wealth fund Temasek, US hedge fund Tiger Global, and 3one4 Capital. 

The latest funding helped Open’s valuation soar past the $1 Bn mark. 

The fresh strategic infusion from Ola’s backer IIFL will help Open to accelerate its product offerings on SME lending. The startup at present is gearing for the launch of three new products in the SME lending space. The three new products would be :

Open Flo – a revenue-based financing product for ecommerce businesses
Open Settl – an early settlement credit offering
Open Capital – working capital lending offering for SMEs. 

The startup claims to disburse $1 Bn in lending through these new lines of products in the next 12 months. 

The startup states that it has increased its customer base to  2.3 Mn in the past 12 months and plans to reach 5 Mn globally in the next one year. The startup further intends to utilise the capital to strengthen its leadership team and increase employee headcount from 500 to 1,000 in the next one year. 

The fresh funding comes almost six months after the neobanking startup raised $100 Mn. Inc42 was first to report on the development of Open’s Series C round of funding. Back then the startup raised funding from Temasek, SBI Investment, Tiger Global, 3one4 Capital. The round valued the startup around $600 Mn. 

Founded in 2017 by Anish Achuthan, Ajeesh Achuthan, Mabel Chacko, and Deena Jacob, Open offers business banking, payments and expense management services to SMBs across the country. 

The startup at present competes against the likes of Nubank, IPO-bound Navi, CredAvenue, Oxyzo, among others. 

India’s overall fintech market is estimated to grow at a pace of 31% CAGR to $1 Tn by 2025. Of this, around 47% is expected to account for lending.