Neo banking startup Open Financial Technologies has raised $30 million in Series B round led by Tiger Global with the participation of Tanglin Venture Partners Advisors.
Existing investors 3one4 Capital, Speedinvest and Better Capital AngelList Syndicate also participated in the round. Back in February, Beenext Ventures had led Rs 32 crore Series A round in the Bengaluru-based startup.
The fund will be deployed to expand operations across a million small enterprises within next one year. Besides, it is also planning to launch new products (Open+ card) and Layer and start value-added services for its customers.
The target of the firm, as CEO Anish Achuthan told ET, is to ease out the process of banking for over 1 million businesses.
Currently, it claims to work with 100,000 small enterprises and processing transactions worth $5 billion. Word is that they’re adding 20,000 SMEs to this figure every month. At this rate, the target of serving one million businesses seems to be a matter of next 4 years.
But in reality, with fundings and business expansion the number of businesses being added every month should pick up pace, making the timeline shorter. The addition of products is also slated to help out in the process.
Founded by Achuthan, Mabel Chacko and Achuthan along with ex-TaxiforSure CFO Deena Jacob in 2017, Open offers digital banking service for startups and small and medium enterprises (SMEs)
Apart from the aforementioned investors, PayU India CEO Amrish Rau and managing director Jitendra Gupta had put $250,000 as seed fund in Open.
With this round, the total funding of the 2017 founded two year old fintech firm has gone up to $37.4 million.
Open is so far the highest funded and relatively more known application in this segment. The latest funding strengthens its position in the market and should help it grow further.