Bengaluru-based fintech startup Open Financial Technologies has raised an undisclosed amount in its pre-series A funding round, which was led by Unicorn India Ventures and Recruit Co. Ltd, through its investment subsidiary RSP India Fund LLC.
Along with them, existing investors of the company — ISME-ACE and Vaibhav Domkundwar’s BetterCapital AngelList syndicate have also participated in the round.
Earlier, Open has raised investments from Citrus Pay founders Amrish Rau and Jitendra Gupta, TaxiforSure founder Apremaya Radhakrishnan, Chiranth Patil of BetaPlus Ventures and Archana Priyadarshini of Unicorn India Ventures.
The company has said that the funding will be used to accelerate customer acquisition and growth. Further, the startup targets to onboard 200,000 small businesses into the platform in the next two years. The funding will also be used to enhance the firm’s core platform to launch new products on lending and wealth management using AI and financial analytics.
Commenting on this development, Archana Priyadarshini, Partner, Unicorn India Ventures said, “Fintech in India is one of the fastest growing sectors because technology can play an enabler in taking banking solutions at affordable rates to the unbanked population. Open’s business model of extending traditional banking services through digital route is a unique proposition within fintech and this prompted us to lead the round.”
Open was founded in May 2017 by Anish Achuthan, Mabel Chacko, and Ajeesh Achuthan along with ex-TaxiforSure CFO Deena Jacob. The startup offers a digital banking service for small businesses. The team of 25 people has garnered over one thousand customers.
Along with enabling the businesses to run their finances effectively, the platform also offers an APIs for developers to integrate banking and payments into their business workflows.