Neobank Open to be Next Unicorn with Future Valuation of over $1 Billion
With a future investment round valued at over $1 billion, Neobank Open will be the next unicorn to join the club. According to reports, TVS Capital Funds would lead the round, which has a signed term sheet.
The round, which is a combination of primary and secondary funding, will include existing investors as well. According to two people familiar with the situation, the new (main) fundraising will be in the range of $50 to $75 million.
Open was already in negotiations with investors for a new round at the time.
According to the source, the business wanted to initiate another round immediately following its Series C round in October 2021 in order to attain unicorn status as soon as possible in order to keep its competitive edge and continue drawing large investments in the future.
A unicorn is a privately backed corporation having a market capitalization of at least $1 billion.
Open received $100 million in its Series C financing, anchored by Temasek and with participation from Google, Japan's SBI Investments, and Visa.
Open was valued at $500 million in the previous round, and the current round will more than quadruple its worth. Speedinvest, BEENEXT, Tanglin Venture Partners, Tiger Global, AngelList, 3one4 Capital,Unicorn India Ventures, and Recruit are among the startup's other investors.
The surge in Open's worth is a result of the startup funding frenzy that began in 2021 and is continuing into 2022, with a spate of companies raising multiple rounds in quick succession during the preceding year, with valuations growing with each round.
After Digit Insurance and enterprise debt marketplace CredAvenue, this is TVS Capital Funds' third fintech venture.
Open, a neobanking platform, offers commercial banking services to small and medium-sized businesses (SME). Its services include invoicing, credit, payroll, current account, and cash management for startups, SMEs, and freelancers, among others.
While there are several companies in the neobanking industry, such as Niyo, Jupiter, EpiFi, Freo, and others, Open competes directly with RazorpayX, which is also a SME-facing neobank. Individual banking solutions are provided by the other providers.
According to the startup's most recent financial filings, which were discovered through Tofler, the business declared a loss of Rs 42 crore and revenues of Rs 8.61 crore for the financial year 2020 (FY20).
Anish Achutan, Ajeesh Achutan, Deena Jacob, and Mabel Chacko, all former PayU and Citrus Pay executives, founded Open in 2017. Apart from its neobanking activities, the business also has an integrated finance platform called Zwitch and a cloud-native SME banking platform called BankingStack.
The round, which is a combination of primary and secondary funding, will include existing investors as well. According to two people familiar with the situation, the new (main) fundraising will be in the range of $50 to $75 million.
Open was already in negotiations with investors for a new round at the time.
According to the source, the business wanted to initiate another round immediately following its Series C round in October 2021 in order to attain unicorn status as soon as possible in order to keep its competitive edge and continue drawing large investments in the future.
A unicorn is a privately backed corporation having a market capitalization of at least $1 billion.
Open received $100 million in its Series C financing, anchored by Temasek and with participation from Google, Japan's SBI Investments, and Visa.
Open was valued at $500 million in the previous round, and the current round will more than quadruple its worth. Speedinvest, BEENEXT, Tanglin Venture Partners, Tiger Global, AngelList, 3one4 Capital,Unicorn India Ventures, and Recruit are among the startup's other investors.
The surge in Open's worth is a result of the startup funding frenzy that began in 2021 and is continuing into 2022, with a spate of companies raising multiple rounds in quick succession during the preceding year, with valuations growing with each round.
After Digit Insurance and enterprise debt marketplace CredAvenue, this is TVS Capital Funds' third fintech venture.
Open, a neobanking platform, offers commercial banking services to small and medium-sized businesses (SME). Its services include invoicing, credit, payroll, current account, and cash management for startups, SMEs, and freelancers, among others.
While there are several companies in the neobanking industry, such as Niyo, Jupiter, EpiFi, Freo, and others, Open competes directly with RazorpayX, which is also a SME-facing neobank. Individual banking solutions are provided by the other providers.
According to the startup's most recent financial filings, which were discovered through Tofler, the business declared a loss of Rs 42 crore and revenues of Rs 8.61 crore for the financial year 2020 (FY20).
Anish Achutan, Ajeesh Achutan, Deena Jacob, and Mabel Chacko, all former PayU and Citrus Pay executives, founded Open in 2017. Apart from its neobanking activities, the business also has an integrated finance platform called Zwitch and a cloud-native SME banking platform called BankingStack.
.jpg "Radiance Renewables: Driving Sustainable Inno-vation in India's Renewable Energy Landscape")
