Fintech startup Open, which offers a business banking service for SMEs and startups, has raised Rs 210 crore ($30 million) in a Series B round. The funding was led by Tiger Global Management and saw participation from Tanglin Venture Partners Advisors. Existing investors 3one4 Capital, Speedinvest and BetterCapital AngelList Syndicate also participated in the round.
Open plans to use the funding to scale up the team, launch more products and value-added services and expand its reach to 1 million SMEs in the next one year. Open is immediately set to launch two new products: The Open+ card, a business credit card with a 30-day interest-free credit line, for venture backed start-ups and Layer, a unique programmable bank account for developers.
Open, founded in 2017, focuses on solving business banking challenges faced by SMEs and startups. It offers a business account in partnership with banks to help businesses automate and run their finances effectively. This business account has all the tools that helps businesses send and receive payments combined with the automated bookkeeping tool to integrate banking into their business workflows.
The Open platform today claims to have grown to over 1 lakh SMEs and processing over Rs 35,000 crores in transaction. The platform also adds over 20000 SMEs every month.
â€śBeing one of the fastest growing SME neo-banking platforms in the world, the key is to match the ever-increasing customer demand for seamless financial management. For this, we have to scale up the technology and our team. This funding will help us accelerate our target of simplifying business banking for more than 1 million businesses at a greater pace and also launching new products like the Open+ card and Layer that will enhance our value proposition for small businesses,â€ť Anish Achuthan, CEO, Open said in a statement.
The startup says that the Open+ business credit card will be offered to help startups who are currently being ignored by traditional credit companies. The card comes with an integrated end-to-end expense management platform that enables businesses to issue physical or virtual cards to their employees with custom spend limits and seamless expense filing.
Open is also enhancing its API banking suite with the introduction of Layer - a programmable bank account that will enable developers to control money programmatically, build their own features on top of the bank account and securely integrate with other services.