India based neo-banking platform Open has raised $100m in a Series C round to drive its expansion across new markets and to further strengthen its presence in the SME neobanking space.

The funding round was led by Temasek with participation from investors including Google and SBI Investment.

Existing investors Tiger Global and 3one4 Capital also invested in the round which brings the firm’s valuation to $500m.

Founded in 2017, Open provides small and medium-sized businesses (SMEs) with business current accounts which integrates services including payments, invoicing, digital banking, and automated bookkeeping services.

With the fresh capital infusion, Open plans to further strengthen and accelerate its new product lines, namely BankingStack and Zwitch.

BankingStack is a cloud-based SME banking platform designed for financial institutions while Zwitch is its embedded finance platform.

The firm also intends to expand its base to 5 million SMEs by next year and build out into new global markets including South East Asia, Europe and the US.

The new capital will also support the firm’s plans to ramp up its technology, product and business teams with the addition of some 800 employees.

Open CEO Anish Achuthan said: “Over the last 4 years, we’ve grown from strength to strength to be the fastest-growing SME neo-banking platform globally.

“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.”

Earlier this year, Indian neobank Zolve received a $15m boost in a seed round led by venture capital firms Accel and Lightspeed.