Neobank unicorn Open posts Rs 46 Cr revenue in FY25; outstanding losses mounts to Rs 1,921 Cr

Once hailed as India’s first neobanking unicorn, Open is yet to live up to its hype. The startup's revenue is still under Rs 50 crore in FY25, while the bottom line for the Bengaluru-based firm is in the red with over Rs 100 crore during the fiscal year ending March 2025.

Open’s revenue from operations increased 85% to Rs 46 crore in FY25, compared to Rs 24.8 crore in FY24, its annual financial statements sourced from the Registrar of Companies (RoC) shows.

The company builds digital payment solutions that offer businesses a fully digital current account along with a suite of integrated tools for finance, accounting, and credit, all in collaboration with banking and lending partners.

Open’s revenue in FY25 mainly came from subscription-based digital payment services and commission income on a pay-per-use model, which contributed Rs 46 crore. It also added Rs 12.1 crore from interest on deposits (non-operating), thanks to its healthy cash and bank balance, which helped lift its total revenue to Rs 58.1 crore during the fiscal year.

For the neo-bank platform, employee benefits formed 62.5% of the total burn, which stood at Rs 100 crore in FY25, while its software expenses were recorded at Rs 18.3 crore. Its legal/professional, advertising cum marketing, commissions, travel, insurance, and other overheads stretched the overall expenses to Rs 160 crore in FY25.

The 85% increase in revenue and reduction in employee benefits helped Open to reduce its losses by 35.8% to Rs 108.8 crore in FY25, compared to Rs 169.6 crore in FY24. The accumulated losses for the Tiger Global-backed startup mounted to Rs 1,921 crore ($225 million) till FY25.

Open’s expense to revenue ratio improved this year, while ROCE and EBITDA margin recorded at -56.6% and -235.65% respectively. The company has a current total assets of Rs 210 crore, including cash and balances of Rs 202 crore by the end of the previous fiscal year (FY25).

According to the startup data intelligence platform TheKredible, Open has raised over $190 million across rounds, including its $50 million round led by IIFL and with the participation of Tiger Global, where the company turned Unicorn in 2022.

Open’s FY25 numbers highlight the stark reality facing India’s neobank sector. Despite unicorn valuations and massive funding, regulatory restrictions on digital lending, FLDG arrangements, and prepaid credit lines, combined with high employee costs and intense competition from traditional banks, have made profitability a distant goal. Rapid user growth alone no longer guarantees success for all the neo-banking platforms.

For growth, Open and other neobanks will need to broaden their playbook beyond basic banking services. This could include expanding into lending for SMEs, wealth management, insurance distribution, or SaaS-based finance tools, leveraging their existing customer relationships. Given the regulatory circumstances and investor pressure, the growth in this particular category seems distant.