Neobank Open Spent INR 81.4 Cr To Earn INR 5.6 Cr In FY21

Soon to be unicorn neobank startup Open has seen its standalone revenue from sales grow by 74X in the financial year ending on March 31, 2021. 

The Bengaluru-based neobank has posted a sales revenue of INR 5.6 Cr in FY21, a sharp jump from INR 7.5 Lakh it recorded in FY20. 

In FY21, the startup recorded INR 10 Cr from its other income, thus taking the total revenue of the startup to INR 15.7 Cr. a 82.5% rise from INR 8.6 Cr it generated in FY20.

Open has seen its expenses shot up by 1.6X in the last financial year, i.e., FY21. The SME-focused neobank has burnt cash worth INR 81.4 Cr in FY21, a noticeable jump from INR 50.8 Cr in FY20.

The startup’s heavy expenses were under employee benefit expenses, where it spent nearly half of the total expenses. Employee benefit expenses comprising salaries, gratuity, ESOP expenses, and other employee welfare related expenses stood at INR 46.9 Cr in FY21, a jump from INR 32.4 Cr it incurred in FY20.

The startup spent around INR 15.7 Cr in FY21 for depreciation and amortisation cost. It spent around INR 10 Cr for advertising and marketing for FY21. 

The startup in FY21 saw its loss rise by 55.6% from INR 42.2 Cr it witnessed in FY20 to INR 65.7 Cr it recorded in FY21. 

Founded in 2017 by Anish Achuthan, Ajeesh Achuthan, Mabel Chacko and Deena Jacob, Open offers business banking, payments and expense management services to more than a million small and medium enterprises. The startup claims to have boarded more than 2 Mn SMEs and processes over $24 Bn annually. Open claims to add 100K new SMEs every month. 

In October last year, Inc42 exclusively reported that Open was raising its Series C round worth $100 Mn. The startup later confirmed the development with an official announcement. The startup’s new investment was led by Temasek and saw participation from Google and SBI Investment, one of Japan’s leading venture capital firms. Existing investors, Tiger Global and 3one4 Capital, also participated in the round.

Reportedly, Open is in talks to raise a fresh round at an unicorn valuation.