Open Financial Technologies Success Story: 5 Key Lessons for Every Entrepreneur

Introduction

In India’s rapidly evolving fintech landscape, Open Financial Technologies has emerged as a pioneering force, redefining how small and medium enterprises (SMEs) manage their financial operations. Founded in 2017 by serial entrepreneurs Anish Achuthan, Mabel Chacko, Ajeesh Achuthan, and Deena Jacob, Open introduced Asia’s first neo-banking platform tailored specifically for SMEs, startups, and freelancers. By integrating traditional banking services with business tools like invoicing, expense management, payroll, and accounting, Open filled a critical gap in the financial ecosystem that mainstream banks had long overlooked.

In May 2022, Open achieved a major milestone by raising $50 million in a Series D round led by IIFL, which pushed its valuation to $1 billion, officially making it India’s 100th unicorn. This landmark achievement underscored the company’s substantial impact on the fintech sector and its unwavering commitment to empowering the backbone of India’s economy—its small businesses—through integrated, intelligent, and accessible financial solutions.

“We are the only platform that has such a variety of business finance tools like payments, accounting, taxes, expense management, and payroll integrated into one place and linked to the bank account.” — Anish Achuthan, Co-founder & CEO, Open Financial Technologies

Origin Story

The inception of Open Financial Technologies was deeply rooted in the founders’ personal encounters with the financial complexities faced by small and medium enterprises (SMEs) in India. As seasoned entrepreneurs in the fintech space, Anish Achuthan, Mabel Chacko, Ajeesh Achuthan, and Deena Jacob had worked closely with numerous startups and small businesses. Time and again, they observed a recurring pain point: SMEs were burdened with managing disjointed financial systems—from traditional banking dashboards to separate tools for invoicing, payroll, taxes, and accounting. These fragmented workflows created inefficiencies, errors, and a serious lack of visibility into cash flows.

“I realized during various interactions with business owners and entrepreneurs that business banking is broken for small businesses. They struggle to track their cash flows as they have to work with multiple disjointed systems like a banking dashboard, invoicing tool, payroll, and accounting software that makes reconciliation a pain.” — Anish Achuthan

The founders themselves had previously launched and scaled fintech startups such as Zwitch and PayU India, which gave them deep insights into the financial operations of both banks and startups. These experiences not only exposed the limitations of traditional banking for SMEs but also equipped the team with the technical expertise and market knowledge required to design a revolutionary product.

They envisioned Open as more than just a digital banking solution—it would be a comprehensive financial operating system for small businesses. One that would unify banking with tools for invoicing, expense tracking, payment collections, payroll, and taxation—essentially, every major financial touchpoint—into one seamless platform.

This vision marked the beginning of Open’s journey to redefine business banking in India. By eliminating the complexity of managing multiple systems and offering real-time insights into business finances, the platform aimed to empower SMEs with clarity, control, and confidence.

Business Landscape and Challenges

When Open Financial Technologies entered the Indian fintech scene in 2017, the sector was largely concentrated on consumer-facing innovations—such as digital wallets, UPI-based transactions, and financial inclusion for the unbanked population. Companies like Paytm, PhonePe, and Google Pay were transforming how individuals managed money. However, amid this consumer-focused surge, a critical segment remained neglected: small and medium enterprises (SMEs).

Despite contributing nearly 30% to India’s GDP and employing over 110 million people, SMEs often lacked access to streamlined and effective financial solutions tailored to their business needs. According to government data, India is home to over 63 million MSMEs, yet most of these businesses continued to rely on disparate systems—from bank dashboards to third-party tools like Tally, Zoho, or SAP—to manage operations such as invoicing, payroll, tax filing, and cash flow management. This fragmentation created inefficiencies, data silos, and reconciliation nightmares.

“When you look at the larger market with 61-70 million MSMEs, which includes a lot of long-tailed businesses, even if you focus only on the GST-registered businesses and upwards, there are 2-3 million businesses, which today use larger ERP systems starting from Tally to SAP, and that is our target market.”— Anish Achuthan

Open’s decision to focus on SMEs—a segment overlooked by most fintech players and under-served by traditional banks—was bold and unconventional. But it came with its own unique challenges:

• Banking Ecosystem Resistance: Traditional banks were initially hesitant to collaborate with a young fintech startup. Building trust and articulating how Open could enhance—not compete with—their services required persistent effort.
  
  
• Technological Complexity: Integrating multiple financial functionalities such as payments, invoicing, expense management, payroll, and tax filing into a single intuitive platform involves solving deep engineering challenges while maintaining high security and regulatory compliance.
  
  
• Customer Education: Many SMEs were unfamiliar with neo-banking or digital finance tools. Open had to not only onboard them but also educate and guide them on best practices for managing their finances online.
  
  

Open tackled these hurdles by strategically partnering with banks such as ICICI Bank, Axis Bank, and Yes Bank, offering them a tech-driven layer that simplified SME engagement. The company also placed a strong emphasis on regulatory compliance, working closely with the RBI’s guidelines to ensure robust and secure financial practices.

Moreover, Open maintained a feedback-driven development process—constantly iterating the platform based on real-world use cases from SMEs. This commitment to building a truly useful and compliant platform helped establish credibility and trust, eventually enabling Open to scale to over 2.3 million businesses, processing $30 billion+ in annualized transactions by 2023.

Growth Strategies

Open Financial Technologies’ remarkable ascent in the fintech ecosystem is a testament to its laser-sharp focus on solving real problems for SMEs, paired with strategic foresight and operational discipline. The company’s growth wasn’t accidental—it was engineered through a series of deliberate, well-executed strategies:

1. Product-Centric Development

From its inception, Open adopted a “product-first” philosophy, obsessing over user experience and functionality. Rather than offering piecemeal features, Open built a comprehensive, all-in-one financial OS for SMEs. The platform included business banking, invoicing, tax filing, payroll, expense management, and even credit access—eliminating the need for fragmented tools.

This integrated approach simplified workflows for small business owners, allowing them to track everything from payments to compliance in one place. The intuitive user interface and seamless UX ensured high adoption and industry-leading retention rates.

“We are actually building a complete financial layer on top of your banking or ability to bring all your other bank accounts together in one unified platform. — Anish Achuthan

2. Strategic Banking Partnerships

A key pillar of Open’s scale was its early decision to partner with traditional banks rather than disrupt them. Open collaborated with major institutions like ICICI Bank, Axis Bank, Yes Bank, and others, combining the trust and regulatory reach of legacy banks with Open’s modern digital infrastructure.

These partnerships allowed Open to offer bank account opening, corporate cards, and payment gateway services directly through its platform, accelerating adoption and reducing friction for SMEs.

3. Customer-Centric Feedback Loop

Open understood that the needs of SMEs are diverse and ever-evolving. By creating robust feedback loops through direct customer interactions, in-app behavior analysis, and community-building, the team was able to fine-tune its offerings regularly.

For example, as more SMEs began to sell online and manage remote teams post-pandemic, Open introduced modules for e-commerce integrations, remote payroll, and real-time analytics, keeping the platform relevant and indispensable.

4. Scalable Technology Infrastructure

Scaling to serve millions of SMEs required more than just great features—it demanded rock-solid backend architecture. Open invested in cloud-native technology stacks, API-driven services, and secure infrastructure to support high transaction volumes and real-time financial management.

The platform now powers over 2.3 million businesses and processes more than $30 billion in annualized transactions, according to a 2023 Inc42 report. This scale would not be possible without an elastic, resilient infrastructure capable of handling mission-critical business operations.

Marketing Strategy

Open Financial Technologies has adopted a dynamic, multifaceted marketing strategy that blends thought leadership, content-driven engagement, and community building to create lasting relationships with its target audience of small and medium enterprises (SMEs). Rather than focusing on traditional advertising, which often fails to resonate with its audience, Open focused on building trust and providing value through several strategic channels:

1. Thought Leadership

In the competitive world of fintech, credibility is key—and Open has worked tirelessly to position itself as a leader in the SME banking sector. The founders actively participated in major fintech conferences, webinars, and industry events such as Finovate, India FinTech Fest, and SIBOS, where they shared their insights on the future of digital banking, the evolving needs of SMEs, and the changing landscape of financial management.

This involvement in thought leadership allowed the company to build relationships with industry experts, influencers, and policymakers, further solidifying Open’s reputation as a knowledge-driven, customer-first brand. By offering solutions to real-world business problems and engaging in industry discussions, Open solidified its standing as an authority in fintech innovation, directly influencing decision-makers at SMEs to trust its platform.

2. Content Marketing

Open has continuously invested in creating high-quality, educational content aimed at SMEs. The company’s content strategy focused on helping business owners tackle their pain points, such as tax management, cash flow tracking, invoicing, and financial forecasting. The team regularly publishes case studies, blog posts, video tutorials, and downloadable resources that simplify complex financial topics for the SME community.

For example, articles like “How to Streamline Your Cash Flow in 7 Steps” or “5 Accounting Hacks Every SME Should Know” serve not only to educate but also to boost organic search traffic, drawing new users to Open’s platform. Additionally, content marketing has been crucial in establishing the platform’s brand voice—friendly, approachable, and genuinely helpful, ensuring that users see Open not just as a service, but as a trusted partner.

3. Customer Testimonials and Success Stories

Open’s marketing team understood the power of word-of-mouth recommendations and social proof. As a result, they strategically showcased user testimonials and case studies across digital channels. These stories featured customers discussing the tangible benefits they gained by using Open’s integrated financial tools, such as time savings, easier compliance, and better financial transparency.

Success stories were shared across Open’s website, social media, and in email newsletters. By leveraging stories from real users, Open was able to demonstrate the practical value of its platform, which resonated deeply with potential customers. In many cases, these success stories were amplified through partnerships with influencers in the SME space, increasing reach and engagement.

“Let’s concentrate on building valuable software, transforming it into a SaaS service that not only benefits users but also establishes us as innovators in the market.” — Anish Achuthan

4. Social Media and Digital Marketing

Open has utilized targeted digital campaigns to drive awareness and convert prospects. Through social media platforms such as LinkedIn, Instagram, and YouTube, the company has shared helpful tips, educational content, and live Q&A sessions to engage directly with its audience.

Additionally, paid campaigns across Google Ads and LinkedIn advertising have been strategically targeted at decision-makers within the SME ecosystem—such as founders, CFOs, and financial officers—ensuring Open’s message reached the right people. These campaigns were designed not just to attract attention, but to convert leads by showcasing how Open’s products could be immediately useful to their businesses.

5. Community Engagement and Brand Advocacy

Another key element of Open’s marketing success has been its ability to foster a community of engaged users who not only trust the platform but also become brand advocates. This is achieved through a combination of personalized customer support, feedback loops, and continuous product improvement.

Open’s loyal user base often shares its positive experiences on social media, encouraging others in their network to try the platform. Open also invested in user-generated content campaigns, where customers shared their success stories and insights on how they used Open to streamline their financial processes. These grassroots advocacy efforts helped build trust in the platform and attract high-quality leads, demonstrating the brand’s commitment to listening and evolving alongside its users.

5 Valuable Lessons Every Entrepreneur Should Learn from Open Financial Technologies

1. Identify and Address Underserved Markets

One of the biggest takeaways from Open’s success is the importance of identifying underserved markets and crafting solutions specifically tailored to their needs. The fintech space in India was largely dominated by solutions focused on consumer banking and financial inclusion, with little attention given to small and medium enterprises (SMEs). Open recognized this gap early on and made a strategic decision to build a platform that addressed the unique financial needs of SMEs—a market segment often neglected by traditional banks.

This decision was not only visionary but also commercially astute. With over 61 million MSMEs in India, many small businesses were struggling with inefficient financial management systems and were being underserved by banks and other financial institutions. By focusing on this niche, Open was able to capture the attention of millions of business owners who were seeking seamless, integrated solutions for accounting, payroll, invoicing, and payments.

“Small businesses face multiple challenges while tracking and forecasting their cash-flows, managing their account receivables and payables, dealing with multiple interfaces for payment gateways and payroll and hardly have any tools that would help them with their day-to-day business finances.” — Anish Achuthan, Co-founder & CEO, Open Financial Technologies

Lesson for Entrepreneurs: Identifying an underserved market and providing a specialized solution can unlock massive potential. Pay attention to niche markets and tailor your product to their needs for exponential growth.

2. Prioritize Product Excellence

At the core of Open’s success is its commitment to building a robust, user-friendly platform that addresses real customer pain points. Entrepreneurs must understand that product excellence is the foundation of any successful business. Open spent considerable time developing a platform that integrated various financial tools, allowing SMEs to manage payments, accounting, taxes, and payroll all in one place, seamlessly connected to their banking system.

This focus on user experience and product quality enabled Open to build a loyal customer base that appreciated the simplicity and effectiveness of the platform. As the platform continued to evolve based on user feedback, it grew more sophisticated and powerful—constantly meeting the needs of its growing user base.

Lesson for Entrepreneurs: Never compromise on product quality. A great product is the key to attracting and retaining customers. Keep iterating based on user feedback and invest in making your solution intuitive, efficient, and valuable.

3. Forge Strategic Partnerships

Open’s rapid growth and market penetration can be attributed in part to its ability to forge strategic partnerships with established financial institutions. By partnering with leading banks, Open was able to access their infrastructure, trust, and resources, which helped accelerate its scaling process and enhanced its credibility in a highly regulated and competitive market.

These partnerships also allowed Open to offer a comprehensive range of services, from payments to accounting, to SMEs—helping the company expand its offering without having to build every service from scratch. By integrating with well-established banks, Open also ensured that its platform remained compliant with regulations, offering both convenience and security to its users.

Lesson for Entrepreneurs: Building strategic partnerships with other companies can help you access valuable resources, expand your product offering, and grow faster. Don’t be afraid to collaborate with larger institutions that align with your vision.

4. Embrace Regulatory Compliance

One of the challenges that many fintech startups face is navigating regulatory frameworks in the financial sector. Open understood early on that proactive regulatory compliance was crucial to building credibility and trust with stakeholders, especially when dealing with sensitive financial data. The company worked closely with regulators to ensure that its platform adhered to all required norms and standards, providing businesses with a sense of security when using the service.

By embracing compliance from the outset, Open was able to build strong relationships with both regulators and financial institutions, avoiding potential legal hurdles that might have slowed its growth. Regulatory compliance also helped Open gain the confidence of customers who knew they could trust the platform with their sensitive financial data.

Lesson for Entrepreneurs: Always stay on top of industry regulations and ensure that your business complies with relevant laws. Regulatory compliance not only helps you avoid penalties but also builds long-term trust with customers, investors, and partners.

5. Cultivate a Customer-Centric Culture

At the heart of Open’s success is its customer-centric culture, which has been instrumental in shaping its products and services. The company made it a priority to actively engage with users, seek their feedback, and continuously improve its offerings based on their evolving needs. This feedback loop was critical to ensuring that Open remained relevant and valuable to its customer base.

By consistently prioritizing the needs of its users, Open built a community of loyal customers who not only advocated for the platform but also provided valuable insights for future product developments. The company regularly updated its platform, introducing new features and tools based on user requests, which helped it stay ahead of competitors.

Lesson for Entrepreneurs: Create a customer-first culture in your organization. By engaging with your users and incorporating their feedback, you can improve your product and foster loyalty. Happy customers are the best marketing tool you can have.

Conclusion and Key Takeaways 

Open Financial Technologies’ remarkable journey from a startup to a fintech unicorn serves as an inspiring case study for entrepreneurs looking to navigate the complexities of launching and scaling a successful business. Through a unique combination of foresight, innovation, and unwavering focus on customer needs, Open has not only established itself as a pioneer in the SME banking space but also set a global standard for how fintech platforms can revolutionize the way businesses manage their finances.

From the outset, Open understood the untapped potential within India’s vast SME sector, recognizing that these businesses faced significant barriers when it came to financial management. The company’s vision was clear: to create a seamless, integrated financial ecosystem for SMEs that would provide tools like payments, invoicing, accounting, and payroll—all powered by a banking platform. This approach allowed them to differentiate themselves in a crowded market, addressing a clear pain point that had long been overlooked by traditional banking services.

But Open’s success story is more than just about identifying a market gap. It is about consistently prioritizing product excellence to ensure that its platform was intuitive, reliable, and scalable, allowing it to meet the diverse and evolving needs of SMEs. The company’s commitment to customer-centricity through continuous feedback loops further fueled its growth, ensuring that Open’s platform remained agile and adaptable in an ever-changing market.

Strategic partnerships with leading banks and financial institutions were also key to accelerating Open’s growth. By aligning with trusted entities, the company gained the credibility and infrastructure needed to scale rapidly and expand its reach. Additionally, Open’s proactive approach to regulatory compliance played a critical role in building trust with users, ensuring a secure and seamless experience for businesses in a highly regulated industry.

As Open continues to expand its reach and influence, its mission is clear: to transform the landscape of SME banking not just in India but across the globe. The company’s founder, Anish Achuthan, has articulated this ambition succinctly:

“The aspiration is to build a global FinTech brand out of India.”— Anish Achuthan, Co-founder & CEO, Open Financial Technologies