100th Unicorn of India: Neobank Open Raises $50 Mn From IIFL

After receiving $50 million from IIFL, the Bengaluru-based neobanking startup Open becomes the country’s 100th unicorn. Existing investors such as Singapore’s national wealth fund Temasek, 3one4 Capital, and US hedge fund Tiger Global also participated in the round.

According to the startup, it has grown its client base to 2.3 million in the last year and expects to reach 5 million in the following year. The business also plans to use the funds to improve its leadership team and grow its workforce from 500 to 1,000 employees over the next year.

The new round of funding comes almost six months after the neobanking startup raised $100 million in its previous round. Temasek, SBI Investment, Tiger Global, and 3one4 Capital were among the investors at the time. The business was valued at roughly $600 million in financing.

Open, founded in 2017 by Mabel Chacko, Anish Achuthan, Ajeesh Achuthan, and Deena Jacob, provides SMBs across the country with business banking, payments, and cost management services.

Nubank, the soon-to-be-public Navi, CredAvenue, and Oxyzo are among the startup’s current competitors.

India’s whole fintech sector is expected to develop at a 31 percent compound annual growth rate (CAGR) to $1 trillion by 2025. Lending is estimated to account for roughly 47% of this.