Total amount raised
$190.8 Million
Latest funding date
05/01/2022
Location
Open Financial Technologies has successfully raised funds through eight distinct funding rounds, with the latest being a Series D round led by IIFL Finance. The platform is backed by a diverse group of 24 investors, including notable names like Temasek Holdings and 3one4 Capital.
Open offers a connected banking platform designed to simplify business payments and financial management for SMEs and startups. Keep reading to explore the intricacies of Open's fundraising journey and the investors backing this innovative platform.
What Is Open Financial Technologies?
Open Financial Technologies, based in Bangalore, Karnataka, India, is a prominent player in the Financial Services and FinTech industries. The company, which employs between 251 and 500 people, offers a neo-banking platform tailored for SMEs and startups to manage their finances effectively.
Open's platform connects bank accounts and accounting software, enabling businesses to streamline payments, create invoices, and reconcile transactions. Trusted by millions of businesses, Open has established partnerships with major Indian banks and processes billions of dollars in transactions annually.
How Much Funding Has Open Financial Technologies Raised?
- Pre-Seed Round
- Amount Raised: USD 150,000
- Date: December 2017
- Lead Investors: ISME ACE - FinTech Accelerator
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To develop the initial version of the platform and validate the business model.
- Angel Round
- Amount Raised: USD 250,000
- Date: July 2017
- Lead Investors: Amrish Rau, Jitendra Gupta
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand the team and accelerate product development.
- Seed Round
- Amount Raised: USD 2,000,000
- Date: May 2018
- Lead Investors: Unicorn India Ventures
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To launch the platform and start acquiring initial customers.
- Series A
- Amount Raised: USD 5,000,000
- Date: February 2019
- Lead Investors: 3one4 Capital, BEENEXT, Speedinvest
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To scale operations and enhance the platform's features.
- Series B
- Amount Raised: USD 30,000,000
- Date: June 2019
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand market reach and improve customer acquisition strategies.
- Debt Financing
- Amount Raised: INR 250,000,000
- Date: June 2021
- Lead Investors: Trifecta Capital Advisors
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support working capital needs and operational expenses.
- Series C
- Amount Raised: USD 100,000,000
- Date: September 2021
- Lead Investors: Temasek Holdings
- Valuation at Round: USD 600,000,000
- Motivation Behind the Round: To expand operations and scale services.
- Series D
- Amount Raised: USD 50,000,000
- Date: May 2022
- Lead Investors: IIFL Finance
- Valuation at Round: USD 1,000,000,000
- Motivation Behind the Round: To accelerate product lines, drive global expansion, and increase the customer base.
Total Amount Raised: USD 187,400,000. Current Valuation: USD 1,000,000,000.
Key Investors
- IIFL Finance
- Details: IIFL Finance is a diversified financial services company in India, offering a range of services including wealth management, asset management, and investment banking.
- Investment Focus Areas: Financial services, wealth management, asset management.
- Notable Investments: Ola, Open Financial Technologies.
- Temasek Holdings
- Details: Temasek Holdings is a global investment company headquartered in Singapore, focusing on delivering sustainable returns over the long term.
- Investment Focus Areas: Financial services, telecommunications, media & technology, transportation & industrials, consumer & real estate, life sciences & agribusiness.
- Notable Investments: Alibaba, DBS Bank, Singapore Airlines.
- Tiger Global Management
- Details: Tiger Global Management is an American investment firm that focuses on public and private companies in the global Internet, software, consumer, and financial technology industries.
- Investment Focus Areas: Internet, software, consumer, financial technology.
- Notable Investments: Facebook, LinkedIn, Flipkart.
- 3one4 Capital
- Details: 3one4 Capital is an early-stage venture capital firm based in India, focusing on technology and innovation-driven startups.
- Investment Focus Areas: Technology, fintech, consumer products, media, and enterprise automation.
- Notable Investments: Licious, Darwinbox, BetterPlace.
- Google
- Details: Google is a multinational technology company specializing in Internet-related services and products.
- Investment Focus Areas: Technology, Internet services, software.
- Notable Investments: Not publicly disclosed.
What's Next for Open Financial Technologies?
Open Financial Technologies stands at the cusp of significant growth opportunities. With its recent unicorn status, the company is poised to leverage this milestone to attract further investments and expand its market presence. The fintech sector, particularly neobanking, is rapidly growing, offering ample opportunities for innovation and customer acquisition. Open plans to launch new products like Open Flo, Open Settl, and Open Capital, targeting SME lending and aiming to disburse $1 billion in the next 12 months.
Future fundraising opportunities are promising, with potential for additional funding rounds to support global expansion and product development. The company is also considering an IPO, which could be a significant public fundraising event. However, Open may face challenges such as intense competition within the fintech sector, regulatory changes, and the need to scale operations while maintaining service quality. Despite these hurdles, the strong support from investors and the growing fintech market indicate a bright future for Open Financial Technologies.
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