Jupiter’s NBFC Arm, Amica Finance, Secures Funding from Existing Investors

Jupiter’s non-banking financial company (NBFC) subsidiary, Amica Finance, has secured fresh funding in its inaugural equity round. This strategic investment comes from a consortium of existing investors who have previously backed Jupiter’s core neobanking platform.

The board of directors at Amica Finance approved the issuance of 97,89,529 Series A compulsory convertible preferred shares (CCPS) at a price of Rs 20.43 per share. This translates to a total funding amount of Rs 20 crore, or approximately $2.4 million, based on regulatory filings submitted to the Registrar of Companies.

Investment Breakdown and Strategic Direction

Peak XV Partners emerged as the lead investor in this round, contributing Rs 5.25 crore. They were closely followed by Matrix Partners and QED Investors, who infused Rs 4.32 crore and Rs 3.58 crore respectively. The remaining capital came from a combination of investors including BEE Accelerate Fund (BEENEXT), Global Founders Capital, Tiger Global, Greyhound Capital Partners, Mirae Asset Venture Investments, and Bairavan Amrish Rau.

This development signifies a significant step forward for Jupiter’s NBFC ambitions. The company received its NBFC license from the Reserve Bank of India (RBI) in April 2023, granting them the ability to offer loans directly from their own financial resources. According to media reports, Jupiter is also actively seeking a CEO to spearhead this new lending business.

Valuation and Shareholding Updates

Startup intelligence platform TheKredible estimates that Amica Finance’s post-money valuation stands at around Rs 100 crore ($12 million) following this funding round. As a result of the investment, Jupiter’s founder and CEO, Jitendra Gupta, has seen his ownership stake diluted to 76.15%. Peak XV Partners, on the other hand, has emerged as the largest external shareholder with a 6.24% stake. Details on the complete shareholding structure can be found on TheKredible’s platform.

Growth Aspirations and Expanding Product Portfolio

Currently, Jupiter’s lending platform caters to loans with an average term of less than six months and a typical ticket size of Rs 30,000. However, reports suggest that the company has ambitions to expand its offerings, potentially disbursing loans of up to Rs 1 lakh with a maximum tenure of two years.

This funding news follows Jupiter’s recent acquisition of a prepaid payment instruments (wallet) license. This license allows users to conduct UPI payments directly through Jupiter’s mobile application, further expanding their suite of financial services.

Financial Performance and Funding History

Jupiter’s most recent valuation was approximately $710 million, achieved during its Series C funding round in December 2021. To date, the company has raised over $160 million from prominent investors including QED Investors, Peak XV, Tiger Global, and Matrix Partners.

While Jupiter’s operating revenue witnessed a significant increase, registering more than 2.5x growth to Rs 48.86 crore in FY23, their losses also grew proportionally, reaching Rs 327 crore in FY23 compared to Rs 163.94 crore in the previous fiscal year.