Google-backed Neobank Open becomes India’s 100th unicorn with new funding

Neobank’s Open announced Monday that it had entered the Unicorn Club, with a $1 billion funding round. This makes the startup India’s 100th unicorn.

According to the statement, IIFL, a Mumbai-based investment company, led the new round. Existing investors Tiger Global and Temasek, as well as 3one4 Capital, also took part in the round.

Anish Achuthan (co-founder, chief executive at Open) said, “We see a lot synergies avec IIFL, especially in leveraging the lending books, as we get ready to launch innovative products such revenue-based financing and early settlement loan, business credit cards for SMEs on our platform.

Open serves more than 2.3 million SMEs and processes $30 billion annually in transactions. Open has over 12 top Indian banks as partners and is being used by more then 2.3 million companies.

Open Flo – an innovative revenue-based finance product for ecommerce business, Open Settl – early settlement credit offer, and Open Capital — working capital lending option for SMEs are among the new products.

Open has already raised $187 million and will soon unveil three products: revenue-based financing Flo; early settlement card offer Settl; and working capital lending Capital.

This startup aims to distribute $1 billion via its new products.

Open Financial Technologies Pvt Ltd was established in 2017. It offers a platform for neobanking that integrates all tools of small business and connects them with their current accounts.

The Indian fintech industry is the third-largest after China and the US. It’s poised to be disrupted further by the rise of neobanks.

According to Venture Intelligence data, Indian startup companies raised over $10 billion for the first quarter 2022. This is an increase of $5.7 billion from the 2021 period.

In the January-March quarter, 14 startups became unicorns.

With inputs from IANS

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Conclusion

Neobank’s Open announced on Monday that they had entered the Unicorn Club, with a $1 billion funding round led by IIFL. Existing investors Tiger Global and Temasek, as well as 3one4 Capital also took part in the round. Today marks the 100th anniversary of India