Neobanking firm Open based in Bengaluru raises $50 million led by IIFL and becomes the country’s 100th Unicorn. Existing investors such as Singapore’s national wealth fund Temasek, US hedge fund Tiger Global, and 3one4 Capital also participated in the round.
The new round of fundraising pushed Open’s valuation beyond $1 billion.
The new strategic investment from Ola’s sponsor IIFL will help Open expand its SME lending product offerings. Currently, the business is preparing to launch three new solutions in the SME financing area.
“We are excited to partner with IIFL and existing investors Tiger Global, Temasek and 3one4 Capital for our series D round. We see a lot of synergies with IIFL especially on leveraging the lending book, as we are getting ready to launch innovative products like revenue-based financing, early settlement, working capital loan and business credit cards to SMEs on our platform,” said Anish Achuthan, co-founder and chief executive of Open.
According to the firm, it has grown its customer base to 2.3 million in the last year and expects to reach 5 million in the following year. In the coming year, the business plans to use the funds to enhance its leadership team and boost its staff headcount from 500 to 1,000.