Open, which had raised $100 million in October, will use Finin to strengthen its enterprise business and take it overseas in a significant way after the deal, its cofounder, Anish Achuthan, said.
Finin, started in 2019 by Suman Gandham and Sudheer Maram, was among the first few consumer-focused neobanks to offer a savings account to consumers. It was backed by Unicorn India Ventures and other angel investors.
“Our enterprise solution has seen strong demand in India with 14 of Indian banks using our product to power their SME neo-banking platforms,” said Achuthan. “We are seeing demand from countries like Vietnam, Philippines and Finin acquisition will help us there.”
According to Open, the acquisition will also enhance its no-code embedded finance platform Zwitch.
“Over the next three-five years, 50% of our revenue will be from enterprise business, and 70% of that could come from international markets,” Achuthan said.
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Finin’s Gandham said, “The outcome of a consumer-facing neo-banking platform working hand-in-hand with a B2B (business-to-business) neo-banking platform is going be exemplary as we will be able to add a lot of value to Open’s SMEs wanting to open salary accounts for employees, expose consumer banking rails to fintechs using Open’s embedded finance platform Zwitch, and also add value to banks wanting to launch digital banking propositions using Open’s cloud native digital banking OS BankingStack.”
Open, founded in 2017, offers a neobanking platform that integrates all the tools used by small businesses with a business current account. It has around 2000,000 SMEs on its platform and processes over $24 billion in gross transaction volume annually.
The company said it is adding 90,000 SMEs to its platform each month.
Prior to the last funding round in October, Open saw nearly 10-fold growth over the previous 18 months as the Covid-19 pandemic boosted digital adoption by small businesses. The company had said it would use the capital to strengthen its leadership team and hire around 800 people across functions like technology, product and business.
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