Open has acquired consumer neobank start-up Finin for $ 10 million as the business-focused, Bangalore-based, Google-backed neobanking platform seeks to expand its offerings and deepen relationships with banks.
The deal involves both cash and equity, the two said. Launched in 2019, Finin is among the first consumer-focused neobanking startups in India. The startup, which had raised around $ 1 million from Unicorn India Ventures and others, will see key executives, including founder and CEO Suman Gandham, transition to Open.
Anish Achuthan, co-founder and CEO of Open, told TechCrunch in an interview that the acquisition of Finin complements Open’s broader offerings.
Open, which recently received support from Google and Temasek, operates a banking platform for SMEs and also provides banks with an infrastructure to launch their own digital banks. More than ten banks now use the infrastructure of Open to offer their banking services. Open currently has partnerships with 14 banks in India and a few more in Southeast Asia.
Finin offers a savings account that allows consumers to save and invest their money.
“Finin completes our offers with the banks. We will now help banks launch their own consumer-centric neo-banking offerings under their own brands, ”he said. “Many banks are looking to launch their own modern platforms. “
Open still plans to continue to focus on its corporate offerings to banks and is not looking to launch a consumer-focused neobank offering, he said. “Selling direct to the consumer is not in our DNA,” he said. “But as part of our SME offers such as payroll management, we can complete certain B2C functionalities.”
“When we first launched Finin, I promised my team that we would make a mark in the FinTech industry and show Indian consumers what neo-banking can really do for them,” Gandham said in a statement.
“Now, with the acquisition by Open, I have absolutely no doubts that we are accelerating towards this goal. The result of a neo-banking platform intended for consumers working hand in hand with a neo-banking B2B platform will be exemplary because we will be able to add a lot of value to Open SMEs who wish to open salary accounts. for employees, exposing consumer banking rails to fintechs using Open’s integrated funding platform, Zwitch, and also adding value to banks wishing to launch digital banking proposals using the Open’s native digital banking operating system, BankingStack.