Bangalore-based fintech startup Open has raised a Series A fund round of $5 million. The key investors in this round are Beenext, Speedinvest and 3one4 Capital.
The basic business model that Open follows comprises a digital neo-banking service for SMEs. In this, the startup helps their SME clients establish a bank account which is then turned into the operational toll to manage the finances for the SME. The package offered by Open even includes the bookkeeping part. The client will have to ensure that all the inflows and outflows in the business are routed through this account.
Anish Achuthan, Mabel Chacko, Ajeesh Achuthan and Deena Jacob are the four co-founders of Open and come with considerable experience in the fintech space.
Open has managed to rope in over 30,000 clients in the SME category offering its services ever since it started the operations in 2017 and claims to have increased the hit rate to about 7500 clients getting added each month. That puts it among the fastest growing in this space worldwide. The funds now raised will go towards introducing new product as well as to increase the head count in the organization.
â€śBanking is broken for small businesses as traditional business banking services have not focused on the needs of these businesses. This presents us with a large opportunity to disrupt this segment in partnership with banks. The funding will help us accelerate customer acquisition and growth as we target to onboard 1 million small businesses into the platform in the next two years,â€ť Anish Achuthan, Co-founder & CEO of Open said in a statement.
Dirk Van Quaquebeke, Managing Partner, Beenext says, â€śI have been looking at the neo-banking space globally for the past 5-6 years and must say that I have not seen this kind of growth and robustness of an SME Neo product at this young stage of a company. I am deeply impressed by Anish and his team and what they have achieved in such a short period of time.â€ť
Beenext and Speedinvest are foreign investors and the existing investors in Open, Unicorn India Ventures and Angellist Syndicate are also reported to have participated in this round of funding. This is the first ever investment for Speedinvest in India.
â€śTech is enabling the financial inclusion of small businesses everywhere in the world. Based on our track record in Europe, and together with Beenext, our trusted regional partner, we have started to back strong, proven founders like Anish in the Indian market with its practically unlimited growth prospects. We are very excited about our first tech investment in India,â€ť Stefan Klestil, General Partner, Speedinvest, said in a statement.