According to persons familiar with the situation, Neobank Open has finalised a $50 million financing headed by IIFL Finance, with participation from current investors Temasek, Tiger Global, and 3one4 Capital.
According to sources familiar with the situation, Open will leverage the extra capital and IIFL Finance’s strategic skills to build out a loan business in the future.
Open had raised $100 million in a capital round sponsored by Temasek, Singapore’s sovereign wealth fund, last year. In addition, strategic partners, such as Visa, the world’s largest payments network; Google, the world’s largest search engine; and Japan’s SBI investments, all participated in the round.
Open, founded in 2017, is a neo-banking platform that provides small businesses with business tools and integrates with their current account. At the moment, Jupiter, Razorpay X, and Niyo, among others, compete against the company.
“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,” stated Anish Achuthan, co-founder and chief executive of Open, in a statement.