Visa has finalized a $ 5 million investment in Open, as part of the neobank’s Series C fundraiser, according to anonymous sources speaking to Moneycontrol on Monday, October 25.
On October 12, Open said it had raised $ 100 million led by Temasek, which included other investors like Google and SBI Investment, but did not include Visa’s role at the time.
This round valued the Open at $ 500 million.
Open offers small and medium-sized businesses (SMBs) a business account that includes digital banking, payments, billing, and automated accounting.
Read more: Small Business Digital Banking Startup Closes $ 100 Million Funding at $ 500 Million Valuation
With the current boom in startup funding, Open is looking to achieve unicorn status. The company wants to retain an advantage over the neobank space, currently comprised of other companies such as RazorpayX, Khatabook, Jupiter and Fi, enabling digital banking for individual customers and small businesses.
The recent cycle also saw Google’s fourth investment in the Indian startup space, following Glance and DailyHunt in December 2020 and the acquisition of Simsim, the social commerce player, via YouTube this year.
The company was founded in 2017 by Anish Achutan, Ajeesh Achutan, Mabel Chacko and Deena Jacob.
Other Open investors include BEENEXT, AngelList, Tanglin Investment Partners, Unicorn India Ventures, Speedinvest and Recruit.
Separately, Visa would be the first payments company to report results after market close on October 26, PYMNTS wrote.
Read more: Visa results and transaction volumes to offer new insights into consumers ahead of the holiday rush
Visa’s latest report on its Spending Dynamics Index showed consumers were pulling back a bit to 108.5 in September, down 1.1 points from August. But since the reading was over 100, it seems to show consumers are spending at higher levels than last year.
But the report notes that “growth is growth” and that this could show whether the slight slowdown ends up being a minor trend. The report says the American consumer could have ended up “taking a break” before vacation spending began.