Neobank Open raises $62mn Series C from Temasek, Google, others

Bengaluru-based neobanking platform Open has secured around $62 million in a Series C funding round from Temasek, Google and existing investors such as Tiger Global Management and 3one4 Capital.    

Temasek has invested Rs 254 crore ($34.5 million), Tiger Global has contributed Rs 54 crore ($7.3 million) through its Internet Fund V, 3One4 invested Rs 35.7 crore ($4.7 million), and Google backed the startup with Rs 108 crore ($14.7 million) in the round, according to regulatory filings.  

Open previously raised funding in 2019, the company raised Rs 210 crore (around $30.2 million) in a Series B funding round led by US-based Tiger Global, with participation from Tanglin Venture Partners Advisors, 3one4 Capital, Speedinvest, and BetterCapital AngelList Syndicate.  

In July, Open raised around Rs 25 crore ($3.4 million) from venture debt firm Trifecta Capital  

Prior to this Series C round, Open had raised Rs 275 crore ($37.4 million) in total over its Series A and Series B rounds. 

Open, operated by Open Financial Technologies Pvt Ltd, was set up in 2017 by Anish Achuthan, Mabel Chacko, and ex-TaxiForSure CFO Deena Jacob. Achuthan and Chacko have worked on and set up several fintech startups previously, the most notable among them being Zwitch, which was acquired by CitrusPay in 2015.   

Open says its platform helps businesses send and receive payments, automate accounting and expenses, and uses application programming interface (API) tools to help integrate banking processes with SME workflows.  

Open primarily competes with Razorpay X. In the APIs business, it competes with the likes of Setu, Decentro, and Yap among others.  

Currently, the company claims to work with 450,000 SME’s and processing transactions worth $11 billion.   

Earlier this month, Brazil-based Nubank and others have led a $44 million Series B funding round in Mumbai and Bengaluru headquartered in neo banking startup Jupiter. 

In February, Zolve Innovations secured $15 million in a seed round led by Accel and Lightspeed.