Open is a digital bank for startups and enterprises that announced a 17 percent decrease in operational revenue to Rs 24.81 crore in FY24. The startup provides a digital platform offering money transfers, UPI autopay, cash management, and debit cards for online or offline purchases. The application enables businesses to collect online payments and manage. These services are the company’s major source of revenue. The startup also enables users to integrate multiple accounts onto the platform.
Entrackr mentioned in its report that the firm also earns income through interest and gains on current investment services. The scale saw a 17 percent decrease in FY24. The overall gross revenue generated was around Rs 46.11 crore. This includes money from interest and gains on current investments worth Rs 21.3 crore.
The company has secured over 186 million USD across seven funding rounds since its inception, including $50 million raised during its series D funding round led by Arvon Investments and India Infoline. The data intelligence platform, tracxn mentioned that the company’s post-money valuation is around 3.15 billion in May 2022.
The Bengaluru startup develops digital business payment solutions for businesses to provide fully digital current accounts and tools for finance, credit, and accounting. The online platform uses advanced technologies to provide the best customer experience. This fintech startup provides users with various digital business payment solutions.
Open claims to have served over 3.5 million clients and have processed annual transactions of over 35 billion USD. The employee benefits increased the total costs by 60 percent to Rs 117.08 crore in FY24. The total expenditure of the firm decreased by 34.4 percent to Rs 194.65 crore in the same duration.
The Bengaluru startup posted a 55.4 percent improvement in the cash outflows to Rs 91.7 crore in FY24. The employee benefit decreased by 21.6 percent to Rs 117.08 crore in the same duration. The company controlled its losses by 30 percent to Rs 169.68 Crore this fiscal year by cost-cutting measures.
The employee benefits account for 21 percent of the total expenditure compared to the last year. The EBITDA margin also stood at -264.50 percent, while the ROCE was around -45.61 percent. Open faces competition from other internet-first digital banking services providers such as Tide and Chqbook.
Conclusion :
The SaaS-based fintech startup Open announced a 17 percent decrease in its operational revenue to Rs 24.81 crore in FY24. This digital bank service offering platform provides several fintech solutions including deposit accounts, cash management, and expense management services. These services and interest or gain on current investments are the firm’s primary sources of revenue. The loss also decreased by 29.9 percent to Rs 169.68 crore in FY24.
The total expenditure of the firm saw a 34.4 percent decline and crossed Rs 194.65 crore in the same duration. The startup minimized its loss by 30 percent by reducing operating and employee expenses. The company has secured over 186 million USD across multiple funding rounds to date.
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