Bengaluru-based startup OpenApp that makes bluetooth and GSM enabled smart locks has raised $1.3 million in its pre-Series A round of funding from early-stage fund Unicorn India and Karnataka government backed fund KARSEMVEN.
Existing investors Axilor Capital and enterprise software company Zoho’s co-founder Kumar Vembu also participated in the round.
OpenApp’s smart lock is operated through the app that sends alerts to the user about every lock and unlock activity or in case of a threat.
“If individuals managing 4-5 keys have problems, imagine the plight of industries world wide that manage a few hundred thousand keys daily to run their operations. That is a real problem,” OpenApp co-founder and CEO Gotama Gowda told FE Online.
OpenApp claimed to be India’s largest smart lock maker with over 50,000 locks sold last year in 16 states of India and 2 countries in Africa.
The smart lock is made of Aluminium and has three variants – open latch, latch mini and cash transit box with respective battery life of 1-2 years.
Gowda said that the company has achieved product market fit in three major industries such as logistics, banking and retail even as the amount raised will help it to grow significantly in the telecom and SME markets.
OpenApp claimed that the lock activity remains end-to-end secured using SSL certificates and every user login is managed and monitored as session and authenticity of user is validated based on device ID, user login credential, and IP address of users location.
Also, the communication between lock and mobile application has AES128 encryption while its software supports multi-factor authentication.
The start-up was launched in 2015 by Gowda along with Rajshekar Jenne and Siddhesh Keluskar who deployed first lock by hand soldering. The startup bootstrapped till 2017 with $100k revenues in 2016-17.
“Innovation like smart lock is needed by large industries who store physical things. OpenApp Smart Lock has been seeing healthy traction and their product has a global appeal,” said Bhaskar Majumdar, managing partner at Unicorn India Ventures.
Gowda said that the company is targeting 100,000 devices deployed in 2019 with around 500k users on its platform.
The start-up will also launch two new smart devices by the end of the year.