Mumbai, May 2 (PTI) Open, a fintech startup, on Monday said it has raised USD 50 million (about Rs 382 crore) in a round of funding led by the brokerage IIFL.
The round also saw participation from existing investors like Temasek, Tiger Global and 3one4 Capital.
The Bengaluru-headquartered company also announced that with this fund raise, its valuation has crossed USD 1 billion.
It has become the 100th such ‘unicorn’ startup in the country having a valuation of over USD 1 billion, it said in a statement.
India is home to the third-largest startup ecosystem in the world and has seen a massive surge in the number of unicorns in the last year.
The funding will help Open accelerate its existing product lines, drive global expansion and reach over 5 million customers within the next one year, the statement said, adding that the funds will also be deployed to strengthen the leadership team and double employee base to 1,000 within the year.
Open, which serves small businesses, startups and freelancers, has increased its customer base to 2.3 million in the last 12 months.
This is a “strategic investment” from IIFL which will help Open accelerate its new product offering on SME lending, the statement said.
It is targeting to disburse USD 1 billion through a new suite of products in the next year.
“We are delighted to be part of the most exciting neobanking venture in India. Indian MSMEs’ banking and credit delivery can be revolutionized by Open. We look forward to strengthening the partnership in multiple ways,” said R Venkatraman, co-promoter of IIFL Group and chairman of IIFL Securities.
Open’s co-founder and Chief Executive Anish Achuthan said he sees many synergies with IIFL in the run-up to the launch of products like revenue-based financing, early settlement, working capital loans and business credit cards to small businesses. PTI AA AJ ABM ABM
