Credit card for startups, SMEs: Small businesses can now manage expenses, payments; enjoy rewards

By: |
Updated: November 12, 2019 7:13:04 PM

Credit and Finance for MSMEs: Tiger Global-backed neobanking startup Open partnered with Visa to launch Founders Card -- credit card for SMEs and startups to manage their expenses and vendor payments.

credit card usage, digital india, digitisation, pos purchase, american expressThe credit limit on the card is from Rs 60,000 to Rs 3 lakh while the underwriting will be taken care of by Open itself.

Credit and Finance for MSMEs: Tiger Global-backed neobanking startup Open, which offers business banking services to small businesses, has partnered with Visa to launch Founders Card — credit card for SMEs and startups to manage their expenses and vendor payments. The startup said the card is first of its kind in Asia and offer tools like expense management and subscription management to help promoters and finance teams manage subscriptions and expenses. “Rewards relevant to the business that can help with growing and scaling the business like SaaS subscriptions, cloud hosting, coworking, airport lounge access etc. are offered to SMEs and startups,” Anish Achuthan, CEO and Co-founder, Open told Financial Express Online.

The credit limit on the card is from Rs 60,000 to Rs 3 lakh while the underwriting will be taken care of by Open itself, Achuthan said. The card was launched on Tuesday at the Singapore Fintech Festival. Open, founded in 2017, partners with banks to offer a business account to businesses for sending and receiving payments along with automated bookkeeping to integrate banking into their business operations.

Also read: Corporates looking to back startups? This VC fund will handpick them for you with this new programme

The platform serves more than 2 lakh SMEs and processes over $6.5 billion in transactions annually. Open claimed to add more than 35,000 SMEs monthly and is looking to grow in markets including the Asia-Pacific Region, the US and the Middle East in the months ahead. “Visa launched the Fintech Fast Track program last year in India to support homegrown startups and we are keen to help young businesses automate payments with our commercial solutions,” T.R. Ramachandran, Group Country Manager India & South Asia, Visa said in a statement.

Tiger Global invested $30 million in Open in June this year at $150-million valuation. It had earlier backed Brazilian neobank unicorn Nubank. However, while Nubank is more B2C focused, Open has the B2B model. Even though neobanking is a new concept in Asia however in Europe, neobanking startups such as Revolut, N26, Monzo, etc. have hit $1-billion valuation in a few months after launching.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Next Stories
1MSMEs looking to list? Govt willing to buy 10% of your bonds
2Byju’s planning to launch a wide range of products in US
3Mobikwik gross revenue more than doubles to Rs 105.9 crore in Sept quarter