Neo-banking startup Open in talks with Tiger, DST for $50M fresh funding
New-age digital banking platform Open is in talks to raise Series B funding led by New York-based investment firm Tiger Global Management and Apoletto Asia, the personal investment vehicle of DST Global’s partners, according to two people in the know of the matter.
Open may receive $50-60 million, with at least $30 million being pumped in by Tiger Global, which has been on an investment spree in India over the past few months.
“The talks are in final stages and the due diligence is currently ongoing. The deal could close within a week or 10 days,” said one of the sources on condition of anonymity. “The investors could pick up close to 25% in the company through this round,” another source said.The round could value the company at $150million.
In February, Open raised Rs 32.4 crore at a valuation of Rs 132.4 crore, led by BeeNext, along with 3one4 Capital and Speedinvest, regulatory filings show.
While Tiger Global Management did not offer a comment on the story, Open and Apolleto Asia did not respond to ET queries.
Open is a neo-banking startup that offers a technology layer over traditional banking products, enabling customers to access banking services through their mobile phones.
The company helps small merchants automate bulk payments and manage financial operations digitally. It works with major lenders such as ICICI Bank to offer the entire range of business banking solutions to small merchants.
“The business has been growing exponentially over the last few months, both in terms of adoption, and retention numbers for SMEs,” said an investor in the know of the company’s financials. “It’s a white space, and the intention with the large round is to capture this SME audience before competition gets in and dumps capital,” he added.
Open wants to create a technology layer over traditional banking products to make it easier for consumers. Many payment gateway startups such as Razorpay and Instamojo are also exploring opportunities in this space.
The company, founded by former Citrus Pay employees Anish Achuthan and Mabel Chacko in 2017, has raised capital from prominent startup entrepreneurs such as Citrus cofounders Jitendra Gupta and Amrish Rau and TaxiForSure founder Aprameya Radhakrishnan.
The founders together own 33% of the company, while Unicorn Ventures and Beenext hold about 10-12%. 3one4Capital and Speedinvest have 6% and 3%, respectively. Prominent angels like Rau and Gupta have a stake of about 8-10% together, regulatory filings show.
Source: ET Tech