Kerala acquired its first unicorn startup after fintech agency Open Financial Technologies, supported by the Kerala Startup Mission (KSUM), raised $50 mn from Mumbai-based IIFL Finance in a Series D funding spherical just lately. A neo-banking platform for SMEs, the Kerala-based startup is India’s one hundredth unicorn, getting into the elite membership with a valuation of $1 billion.
Founded by Anish Achuthan, Mabel Chacko, Deena Jacob and Ajeesh Achuthan in 2017, the startup has partnered with over a dozen high banks in India. Open has additionally constructed Asia’s first digital banking platform for SMEs, startups, and freelancers. The Series D spherical additionally noticed participation from Open’s current buyers, together with Singapore’s sovereign wealth fund Temasek, US hedge fund Tiger Global, and 3one4 Capital. It has raised $140 mn in funding to this point.
Open had acquired early-stage funding of Rs 2 crore beneath KSUM’s Fund of Funds programme. KSUM is the nodal company of the Kerala authorities for entrepreneurship growth and incubation actions within the state. The state’s chief minister, Pinarayi Vijayan, lauded Open’s transfer to provide again to the state by establishing a fintech accelerator and ending faculty in collaboration with KSUM to help startups developing with fintech options. To bolster the state’s startup ecosystem, the corporate has proposed to speculate Rs 200 crore over the following 5 years as a part of the Centre of Excellence and fintech accelerator programmes, he added.
John M Thomas, CEO, KSUM, stated, “By providing innovative services and sustaining its focus, Open has attained great growth in its niche sector. Kerala’s fintech startups can emulate Open’s success story. By bagging the honour of being a unicorn in a highly competitive milieu, it will serve as a model for its peers.”
Open will use the fund it has raised to spice up its current product choices—Zwitch (embedded finance platform) and BankingStack (enterprise banking resolution for banks)—drive international enlargement and attain over 5 million clients over the following 12 months. The fintech startup will even ramp up its management staff, and improve its worker headcount from 500 to 1,000 over the 12 months.
Open is gearing up for the launch of three new merchandise within the SME lending area: Open Flo (a revenue-based financing product for ecommerce companies), Open Settl (an early settlement credit score providing), and Open Capital (working capital providing for SMEs).
Open’s platform provides over 20,000 SMEs each month, making it the quickest rising SME-focused neo-banking service globally. It can be planning to increase to Southeast Asia, Europe, and the US.
Source: www.financialexpress.com”