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Open becomes 100th unicorn of India, raises $50 million led by IIFL: Sources

Neobanking platform Open has raised $50 million at a valuation of $1 billon.

May 02, 2022 / 11:24 AM IST
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Representative Image

Open, a neobanking platform for Small and Medium Enterprises (SME), has raised $50 million at a valuation of $1 billion, sources revealed to Moneycontrol. This makes it the 100th unicorn to emerge from India, marking a seminal moment for the Indian startup ecosystem.

Minister of Science and Technology Dr Jitendra Singh recently said that the country was now at number three in the world in terms of unicorns and that there are 99 unicorns in the country.

Inc42's unicorn tracker too shows 99 unicorns. Trackers by CB insights and Venture Intelligence show 96 and 95 respectively.​

The Series D round was led by IIFL and also saw participation from existing investors Temasek, Tiger Global and 3one4 Capital. The round was majorly a primary raise, with a small secondary component.

Also Read | Startups and Unicorns: We have met the enemy and they are us

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Founded in 2017 by Anish Achutan, Ajeesh Achutan, Mabel Chacko, and Deena Jacob, Open focuses on small and medium-sized businesses by offering them a business current account. The account includes services like digital banking, payments, invoicing, and automated bookkeeping services.

Also Read | India is moving towards making the 'century of unicorns' in a very short time: PM Modi in Lok Sabha

The company is also working on accelerating its new product lines – Zwitch, its embedded finance platform and BankingStack, the cloud-native SME banking platform for financial institutions which is currently deployed at over 15 Banks in India.

Over the next year, Open will expand its base to five million SMEs and expand to global markets like South East Asia, Europe and the US.

The round comes just six months after Open raised $100 million led by Google, Temasek, Visa, and Japan’s SoftBank Investments. Moneycontrol was the first to report that Open will soon look at a follow on round to reach the $1 billion valuation.

Moneycontrol reported on January 7 that TVS Capital Funds was likely to lead the Series D round, however according to multiple sources, the talks did not go through.

One of the sources told Moneycontrol on the condition of anonymity, "Open was in talks with a number of investors and discussions with TVS Capital Funds were at an advanced stage. But both parties mutually decided to not go ahead with it. Moreover, IIFL is more of a strategic partner for their lending plans."



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Priyanka Iyer
first published: May 2, 2022 11:21 am
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