Neobanking startup Open has raised $100 million in a funding round led by Singapore’s sovereign wealth fund Temasek, along with participation of new investor Google, card operator Visa and Japan's SBI Investment.

The fundraising will close in the coming weeks, a person directly aware of the matter said.

Post this funding, Open is now valued at $500 million compared to around $150 million in a previous funding round. Open’s existing investors Tiger Global and 3one4 Capital have also participated in this round.

Anish Achuthan, cofounder and CEO, Open told he plans to use the new funding to strengthen and accelerate its new product lines – Zwitch, the embedded finance platform and BankingStack, the cloud-native SME banking platform for financial institutions which is currently deployed at over 15 Banks in India.

“We look to expand our product range in the coming months in embedded finance and enterprise banking. We also look to cater to over 5 million SMEs by August 2022,” he added. The company, which is adding 90,000 new SMEs to its platform each month, is also planning to expand to global markets like South East Asia, Europe and the US.

The new products are also among the reasons the strategic investors have joined the funding round. Prior to the funding, Open saw a near ten-fold growth over the last 18 months as the pandemic pushed digital adoption by small businesses.

Open will also use the new capital to strengthen its leadership team and plans to hire around 800 people across functions like technology, product and business teams.

Started in 2017, Open offers its neobanking platform that integrates all the tools used by small businesses and integrates it with the business current account. “We now have around two million SMEs on our platform and are processing over $20 billion in annualised transactions,” Achuthan said.

Open competes with other neobanks such as Jupiter, RazorpayX, and Niyo. Amazon and Paytm are also making nascent forays in this space.