Bengaluru-based neobanking platform Open has acquired goods and services tax (GST) and financial automation startup Optobizz for $5 Mn in a stock-plus-cash deal, that will see all 35 Optobizz employees joining the neobanking startup.
Open claimed the deal would expand its MSME target customer base by over 800K from the current 1 Mn customers. The startup said it processes transactions worth $24 Bn annually.
As of December 2020, Open had said it had more than 500K SME customers across 15 partner banks. Further, the company will be setting up a development centre in Hyderabad, where Optobizz is headquartered.
Optobizz was founded by Kalyan Chakravarthy Reddy Alla, Satya Prakash Venkata Sai Buddhavarapu, Adisesha Reddy Gaddam, Ravikanth Somayaji and Sachin Tyagi in 2017. The company develops and offers an accounting and tax management software called OptoTax.