On the heels of a recent $100 million fundraise, 4-year-old neobank Open has purchased India-based consumer-facing neobank Finin for $10 million, according to a Tuesday (Dec. 14) report from TechCrunch.
The acquisition involves cash, as well as stock, according to the report.
The purchase follows Open’s October $100 million funding windfall. That funding round was led by Temasek, current investors Tiger Global and 3one4 Capital, as well as Google, Visa and SBI Investment, PYMNTS reported.
Open’s infusion of investments pushed its value to approximately $500 million, up from $150 million following its prior funding round.
Related: SMB Digital Banking Startup Open Closes $100M Funding At $500M Valuation
Finin Founder and CEO Suman Gandham voiced support of the acquisition on LinkedIn.
“Thanks for the warm welcome Open Financial Technologies,” Gandham wrote. “Glad to be part of Open and can’t wait to build bigger things.”
Finin, which was founded in 2019, offers an app via through the Apple App Store, or through Google Play, according to the company’s website. The app helps customers manage, save and invest, according to Finin. Customers can view all their bank accounts in one place and receive artificial intelligence (AI)-powered insights on spending and saving behaviors, according to the website.
To date, Finin has generated about $1 million in investments, according to the news outlet.
Open, which provides small and medium-sized businesses (SMBs) with a business account featuring digital banking, payments, invoicing and automated bookkeeping, is partnering with Visa to provide enhanced banking options for SMBs in India.
The joint effort gives Open the ability to co-create new offerings with Visa, including real-time payments and business credit cards for startups. The business card from Open is the first card designed specifically to assist startups qualify based on funding as opposed to credit history. It features a suite of expense management tools and is integrated with Whatsapp.
Read more: Visa, Open Combine Forces For Tech-Driven SME Banking
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