Tanglin Venture Partners, a venture capital fund floated by former Tiger Global executives Ravi Venkatesh and Edwina Yeo, joined the round as a new investor. Existing investors 3one4 Capital, Speedinvest and BetterCapital AngelList Syndicate also contributed, Open said in a statement on Tuesday.
With the latest round, the startup’s total funding to date stands at $38 million.
Open said it will use the funds to scale its team, launch more products and value-added services, and expand its reach to one million SMEs in the next one year.
The startup is immediately set to launch two new products, Open+ card, a business credit card with a 30-day interest-free credit line for venture-backed startups, and Layer, a programmable bank account for developers.
“Being one of the fastest growing SME neo-banking platforms in the world, the key is to match ever increasing customer demand for seamless financial management. For this, we have to scale up the technology and our team. This funding will help us accelerate our target of simplifying business banking for more than one million businesses at a greater pace,” said Anish Achuthan, CEO, Open Financial Technologies Pvt Ltd.
Founded in 2017 by serial entrepreneurs Achuthan, Mabel Chacko and Ajeesh Achuthan, along with ex-TaxiforSure CFO Deena Jacob, Open claims to solve business banking challenges faced by SMEs and startups. It offers a business account in partnership with banks, which helps businesses automate and run their finances effectively.
The startup claims that its platform has already grown to over one lakh SMEs, processing over Rs 35,000 crore in transactions.
In February, the startup had raised $5 million in Series A funding led by Beenext, Speedinvest and 3one4 Capital. Existing investors Unicorn India Ventures and Angellist Syndicate also participated in that round.
Meanwhile, Tiger Global has stepped up its investments in India in the past few months.
Earlier this month, the New York investment firm led a $15.5-million Series A round for Bengaluru-based digital credit ledger startup OkCredit. DEALSTREETASIA recently reported that Tiger Global is injecting about $5 million (Rs 34.67 crore) as part of a Series D funding round for online video platform The Viral Fever (TVF).
Last month, it also led a $22-million Series B funding round for logistics management software startup Locus. Tiger Global has also invested in Bengaluru-based home rental startup NestAway Technologies.