Thiruvananthapuram: A startup that was a part of KSUM’s ‘Fund of Fund’ (FoF) scheme has successfully raised Series A funding of $5 million from leading investors. Open, a neo-banking platform for SMEs, bagged the fund from a consortium led by Beenext, Speedinvest and 3one4 Capital. Existing investors Unicorn India Ventures and Angellist Syndicate also participated in
Thiruvananthapuram: A startup that was a part of KSUM’s ‘Fund of Fund’ (FoF) scheme has successfully raised Series A funding of $5 million from leading investors. Open, a neo-banking platform for SMEs, bagged the fund from a consortium led by Beenext, Speedinvest and 3one4 Capital. Existing investors Unicorn India Ventures and Angellist Syndicate also participated in this round. Neo-banks are banks without physical presence, but will be available to consumers in the form of mobile apps.
The Bengaluru-based Fintech startup will use the funds to scale up the team and launch new products, including a credit card named DUO for startups
The Bangalore-based FinTech startup will use the funds to scale up the team, besides planning to launch new products, including a credit card named DUO for startups. Dr. Saji Gopinath, CEO, KSUM, called it a remarkable achievement by a startup from KSUM’s ‘Fund of Funds’ scheme. “We are proud of Open. It has set the perfect benchmark to be emulated by startups in the State. I’m sure more startups will follow suit as they realise the unique possibilities that await them,” he said.
Anil Joshi, Partner, Unicorn India Ventures, said, “I remember when we were considered for the first FoF, there were doubts if this would work. But glad to share that it not only worked but also brought many more funds to apply for a second FoF initiative. This is happening only because of the vibrant startup ecosystem in Kerala and we are proud to be a part of it.”
Open was founded in 2017 by serial entrepreneurs Anish Achuthan, Mabel Chacko and Ajeesh Achuthan, along with ex-TaxiForSure CFO Deena Jacob to solve business banking challenges faced by SMEs. It is a neo-banking platform for small business enabling them to manage cash flows and other financial transactions. SMEs are found to struggle with managing their financing. Open reconciles all payments and makes the deal easier.
Anish Achuthan, Founder and CEO, Open, said, “When I set up my first startup in Kerala in 2001, there was no ecosystem for startups. But now with initiatives like KSUM, I am glad to see the support system being built for startups in the State to grow and sustain themselves. We’re glad to be part of the KSUM’s FoF programme, and we hope our journey can inspire many more entrepreneurs from Kerala.”
“The funding will help us accelerate customer acquisition and growth as we target to on board 1 million small businesses into the platform in the next two years,” he added.
The platform today has grown to over 30,000 SMEs and has been processing over $2 billion in transaction run rate. It has been adding over 7500 SMEs every month.
In May last year, the platform announced that it had raised pre-Series A funding in a round led by Unicorn India Ventures and Recruit Co. Ltd., through its investment subsidiary RSP India Fund LLC. The round was estimated to be around $2 million.
The company offers a business account in partnership with banks that help SMEs automate and run their finances effectively. The account has tools that are required by a small business to send and receive payments combined with an automated bookkeeping tool to integrate banking into their business workflows.