Open, a neo-banking platform focused on small and medium businesses, has acquired tax filing automation platform Optobizz for $5 million (around Rs 36 crore).
Optobizz, operated by Optobizz Software Pvt Ltd, says its platform offers end-to-end GST and financial automation solutions including account receivables and payables, as well as reconciliation for tax practitioners and SMEs.
The deal is being done through cash and stock.
The move will help Open strengthen its position in the SME-focused neo-banking space and enhance product capabilities on automating GST and tax compliance. The company says it is also gearing up to launch a platform focused on tax practitioners and accountants.
“With close to 15 years of experience at product-tech companies on the business finance side, their [Optobizz’s] expertise will help us create more innovative solutions for small businesses across the country,” Open co-founder and CEO Anish Achuthan said.
Bengaluru-based Open, operated by Open Financial Technologies Pvt Ltd, was set up in 2017 by Achuthan, Mabel Chacko, and ex-TaxiForSure CFO Deena Jacob. Achuthan and Chacko have worked on and set up several fintech startups previously, the most notable among them being Zwitch, which was acquired by CitrusPay in 2015.
The company says its platform helps businesses send and receive payments, automate accounting and expenses, and uses application programming interface (API) tools to help integrate banking processes with SME business workflows.
In June 2019, Open raised Rs 210 crore (around $30.2 million) in a Series B funding round. The exercise was led by the United States-based Tiger Global, with participation from Tanglin Venture Partners Advisors, 3one4 Capital, Speedinvest and BetterCapital AngelList Syndicate.
In February that year, the startup raised $4.6 million (Rs 32.40 crore) in a Series A round of funding from Singapore-based venture fund Beenext and early-stage venture firm 3one4 Capital.
In May 2018, Open secured an undisclosed sum in a pre-Series A round led by Unicorn India Ventures and Japan’s Recruit Group. In 2017, it raised $250,000 from Amrish Rau and Jitendra Gupta.