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Temasek and General Atlantic in talks to support Indian neobank Open – TechCrunch


The Bangalore-based neobank Open is at an advanced stage in talks to raise around $ 100 million, according to two sources familiar with the matter.

Temasek, the Singaporean government’s sovereign wealth fund, and General Atlantic are positioning themselves to co-lead the Series C funding round, which values ​​the Indian startup at $ 600 million in pre-currency, the sources told TechCrunch, asking anonymity because the matter is private. Open was valued at around $ 150 million in its Series B funding round two years ago.

Existing Tiger Global investor PayPal, which closed its domestic operations in the world’s second largest internet market earlier this year, as well as Google and Amazon are in talks to participate in the new round, the sources said.

Indian media outlet Economic Times first reported on the size of the impending cycle and identified Google and Amazon as likely investors earlier this week. The cycle is not yet closed, so conditions may change and not all investors may support Open. The startup’s founder and chief executive, Anish Achuthan, declined to comment.

Open works like a neobank that offers almost all the functionality of a bank with additional tools to meet the needs of businesses. The startup offers its clients services such as automated account, payment gateway, credit cards, automated accounting, cash flow management, and tax and compliance management solutions.

Temasek and General Atlantic in talks to support Indian neobank Open - TechCrunch

Realizing the opportunity that they cannot tap the whole market, several banks in India have started in recent years to collaborate with fintech startups to expand their reach in the South Asian country.

“Banks are doing their best to defend their territory by focusing on several fronts: building an ecosystem (led by HDFC Bank), an open approach to fintech partnerships (led by ICICI Bank), a global digital experience as as an acquisition tool (led by Kotak and Ax) etc. But [they] continue to catch up because they lack focus / expertise in each channel (super banking apps and APIs quickly become hygienic). Fintech revenue already accounts for around 10% of private bank commission revenue, but could grow more than 3 times over the next 3 years, ”Bank of America analysts wrote in a report at the end of the year. last year.

“Banks definitely want to own the pipe and the relationships, but they are unlikely to be successful except in very specific segments,” they added.

In recent months, however, some banks have started to reassess their engagement strategy with neobanks, Indian news, and the analytics release reported by CapTable last month.



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