Open’s FY22 Loss Widens 155% Operating Revenue Up 7X
- ByStartupStory | March 9, 2023
Open, a neobanking startup based in Bengaluru, has reported a YoY increase of 155% in standalone net loss, amounting to INR 167.5 Cr in FY22. The company attributed this rise to increased expenses in line with its business growth. Open became India’s 100th unicorn in May 2022 after securing $50 Mn in funding led by IIFL.
In FY22, Open, a neobanking startup, witnessed a substantial YoY surge of 617% or 7.1X in its operating revenue, reaching INR 40.9 Cr from INR 5.7 Cr in the previous fiscal year. The Bengaluru-based company primarily generates revenue from selling services such as business banking, payments, and expense management to small and medium-sized businesses (SMBs) across India. Open’s revenue streams are categorized into two major segments – subscription revenue and commission on services.
Open, a neobanking startup based in Bengaluru, witnessed a remarkable YoY increase in its subscription revenue and commission on services in FY22. The company’s subscription revenue surged by 816% to INR 33.3 Cr, while its commission on services witnessed a jump of over 272% to INR 7.6 Cr. Open’s total revenue for the year, including its other non-operating income, rose to INR 56.3 Cr, marking a significant increase from INR 15.7 Cr in the previous fiscal year.
Open, a neobanking startup, was established in 2017 by Anish Achuthan, Ajeesh Achuthan, Mabel Chacko, and Deena Jacob. The company provides digital business payment solutions to small and medium-sized businesses (SMBs) in India, offering them a fully-digital current account and an array of other business-enabling tools related to finance, accounting, and credit. These tools are developed in partnership with banking and lending partners. Open’s product suite comprises three major offerings – Open Flo, Open Settl, and Open Capital.
A neobanking startup, has reportedly served over 25 Lakh businesses in India with its digital business payment solutions. However, the company’s expenses surged significantly in FY22, with its total expenditure increasing 2.7X to INR 223.8 Cr from INR 81.4 Cr in the prior fiscal year. Employee benefit expenses alone accounted for approximately 48% of this expenditure.
In FY22, Open, a neobanking startup, witnessed a significant increase in its advertising and promotional expenses, which rose 6.8X to INR 68.8 Cr from INR 10 Cr in the previous fiscal year. The company also spent INR 14.7 Cr on technical services, a rise from INR 4 Cr in FY21. Open has raised around $190 Mn in total funding to date, and during its latest funding round, the company expressed its intent to utilize the fresh capital to expand its SME lending product offerings. The startup recently received the Reserve Bank of India’s (RBI) in-principle approval for a payment aggregator license.
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