Jitendra Gupta’s neo-banking platform Jupiter has raised $45 million in its latest Series B funding round co-led by Brazil-based Nubank (Latin America’s largest fintech bank), Global Founders Capital, Sequoia Capital, and Matrix Partners India. Mirae Assets Venture and existing investors including Addition Ventures, Tanglin VC, 3one4 Capital, Greyhound, and Beenext also took part in the round.
This round brings the valuation of the start-up, which is gearing up to be launched to the public in about a month, to over $300 million and marks the first funding round for Jupiter this year, something that is surprising since many firms have raised capital during the past eight months. It had last raised funds in April 2020 ($2 million), and $24 million in November 2019.
“Nubank and Jupiter share the mission of making banking the best experience possible for our customers, putting an end to all the bureaucracy and the pain in the current system. The Indian and Brazilian markets have many similarities and through this investment, we aim to support Jupiter in its growth path. We see a lot of potentials and are excited about joining them so early on their journey,” said David Vélez, founder and chief executive of Nubank, in a statement.
Ashish Dave, chief executive of Mirae Asset Venture Investments’ India business, praised Jupiter, saying that it was exactly what India needs – someone who could deliver simple, extensive, and high-quality digital banking in a cost-efficient way. “Banking needs to meet customers where they are, and serve them in the most intuitive manner possible. Jiten and his stellar tech team have built just that, on top of the existing banking stack,” he said.
The young start-up, which has raised over $70 million to date, is one of the few neobanks in India. A neobank is a digital bank, operating exclusively online without having a physical presence at some specific location or having any physical branches. The neobanking sector in India has been a nascent one even as it has gained traction internationally and several neobanks have been profitable. In today’s world, where almost everything has gone digital, something that has been accelerated by the pandemic, it is time for neobanks to step up. The fintech sector has expanded exponentially since the past year, and neobanks should reap the profits as well.
As for Jupiter, which claims to be a “100% digital bank with no pain,” its eponymous platform was launched in beta this June to bring “delight” to the experience of banking. One of its many products is a savings account equipped with features to simplify the process of money management. The start-up also offers the “Buy Now Pay Later” (BNPL) feature. It has over 120 employees and is currently working to onboard 100,000 people who have signed up to its waiting list.