Open, a Bangalore-based startup that operates a “neo-bank” to help businesses automate and run their finances, has bagged $30 million in a new funding round as investors look to replicate a globally tried and tested business idea in emerging markets.
This Series B financing round for the two-year-old startup was led by Tiger Global along with Tanglin Venture Partners Advisors and existing investors 3one4 Capital, Speedinvest, BetterCapital AngelList Syndicate also participating in it. The new round valued Open at value of $150 million, a person familiar with the matter said. The startup has raised about $37 million to date in total.
Open which operates as a neo bank that offers nearly all the features of the bank with additional tools to serve the needs of a business. Millions of small and medium sized businesses in India struggle with maintaining multiple bank accounts, bookkeeping of their daily spending, and bandying out payments to employees.
Open offers them a platform that automates much of this task. It lets them keep track of each transaction — who it came from, where it is going, and what sales it made across accounts.
Traditional banks have either not addressed these small needs in market, or charge huge amount for their own solutions that is not feasible for a small business.
This startup says it already has over 100,000 customers, with as many as 20,000 coming onboard each month of late. It processes about $5 billion in transactions each year.
Open raised its Series A of $5 million earlier this year.