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New Delhi: Fintech startup Open, which offers online banking services to small and medium enterprises (SMEs), has raised $5 million in a Series A funding round led by BeeNext Ventures, Europe-based venture capital fund Speedinvest and 3one4 Capital.

Existing investors including Unicorn India Ventures and Angellist Syndicate also participated in the funding round, the company said in a statement on Tuesday.

Open counts Recruit Japan, DICE Fintech and angel investors, including Sweta Rau, PayU India CEO Amrish Rau, Citruspay MD Jitendra Gupta and TaxiforSure founder Apremaya Radhakrishnan, as it's investors.

Till date, Open Financial Technologies Pvt. Ltd has raised $2 million in seed and Pre-Series A funding, according to data from Crunchbase.

Founded in May 2017, Open is a neo-banking startup, which offers digital banking services to SMEs and doesn't have any physical branches. The fintech startup claims to have an annual run rate of $2 billion and has served over 30,000 small businesses.

Bengaluru-based Open plans to use the funding to scale up its team and launch new products.

"Banking is broken for small businesses as traditional business banking services have not focused on the needs of these businesses," said Anish Achuthan, co-founder and chief executive of Open Fintech. "This presents us with a large opportunity to disrupt this segment in partnership with banks."

"The funding will help us accelerate customer acquisition and growth as we target to onboard 1 million small businesses into the platform in the next two years," he added.

Founded by former PayU and CitrusPay executives, Anish Achuthan and Mabel Chacko, alongwith Ajeesh Achuthan and TaxiforSure's former finance head Deena Jacob, Open partners with banks to offer business accounts to firms. It offers ease in business payments and an automated book-keeping tool to integrate business workflow.

“Tech is enabling the financial inclusion of small businesses everywhere in the world... We are very excited about our first tech investment in India," said Stefan Klestil, general partner at Speedinvest.

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