Bengaluru-based neobank platform Open raises $100M

Bangalore-based neobank Open is in advanced stages of talks to raise about $100 million. As per the report, Temasek, the Singaporean government's sovereign wealth fund, and General Atlantic are positioning to co-lead the Series C financing round, which values the Indian startup at pre-money $600 million(pre-money).

The existing investor Tiger Global, PayPal, as well as Google and Amazon are in talks to participate in the new round.

The founder and chief executive Anish Achuthan said, Open operates as a neobank that offers nearly all the features of a bank, with additional tools to serve the needs of businesses. The startup offers its clients services such as automated accounts, payment gateway, credit cards, automated bookkeeping, cash flow management and tax and compliance management solutions.

“Banks are doing their best to defend their turf by focusing on several fronts – eco system building (led by HDFC Bank), open approach to fintech partnerships (led by ICICI Bank), overall digital experience as an acquisition tool (led by Kotak and Axis) etc. But they continue to play catchup as they lack the focus/ expertise in each channel (Banking super apps and APIs are fast becoming hygiene).

Fintech revenues are already ~10% of private banks’ fee income, but could grow >3x in the next 3 years,” wrote analysts at Bank of America in a report late last year.