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NEW DELHI : Open Financial Technologies Pvt. Ltd saw its losses rise by 155% to ₹167.6 crore in the last fiscal year from a loss of ₹65.6 crore in FY21, due to higher spending on new products as it added more revenue streams to its neobanking platform.
The Temasek-backed unicorn is aiming to turn profitable by FY25. “With the current revenue growth we achieved for Open Money and securing high-ticket sized contracts for our new divisions, Zwitch and Bankingstack, and our lending products scaling up well, Open aims to attain net profitability in 18-20 months,” Deena Jacob, cofounder and chief financial officer, Open, said.
Bankingstack enables financial institutions to launch SME neobanking offerings for their customers, while Zwitch is an embedded finance platform.
Open’s operating revenue jumped over 7x to ₹ 40.9 crore in FY22, against ₹5.7 crore in FY21, as a result of its efforts to monetize its neobanking platform and launch of new revenue-generating products, it said in its FY22 filings with the Registrar of Companies (RoC) on Monday.
Open, which offers banking, payments, accounting, compliance and growth services, to small and medium businesses, offered its neobanking platform for free till last year.
“In 2021, we experimented with about 20% of our user base on a freemium SaaS (subscription-as-a-software) model for higher usage, which grew well adding strongly to the topline as adoption increased rapidly. Open started monetizing from SaaS, transaction revenues and third-party tools since mid-2021,” said Jacob.
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John Miller has been writing about science, gaming, and tech culture for over a decade. He’s a top-rated reviewer with extensive experience helping people find the best deals on tech and more.
