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Neobank Jupiter Receives Wallet License from RBI

Jupiter
Preeti Bali / 8:25 am / June 14, 2024

Jupiter, a main neobanking stage, has been conceded a Prepaid Installment Instruments (PPI) permit by the Save Bank of India (RBI). This urgent administrative endorsement, affirmed by an authority RBI notice, enables Jupiter to offer computerized wallets to its client base. These computerized wallets will work with UPI installments, a generally taken on advanced installment framework in India.

Building on Existing Offerings

Jupiter already provides comprehensive digital savings bank accounts to its customers. These accounts come equipped with a suite of built-in money management features. Users can leverage real-time insights into their spending habits, track their total liquid assets across various bank accounts, set personalized savings goals, and conveniently send or receive funds using UPI.

Strategic Expansion with Regulatory Backing

The acquisition of the PPI license signifies a strategic expansion for Jupiter. The company, led by CEO Jitendra Gupta, had previously secured a non-banking finance company (NBFC) license from the RBI. This NBFC license allows Jupiter to extend credit to its customers directly.

Financial Performance and Competitive Landscape

Tiger Global is a prominent investor in Jupiter, which was last valued at approximately $710 million following an $86 million Series C funding round in December 2021. The company has raised over $160 million in total funding, including a $12 million debt financing round in January 2023. QED Investors, Peak XV Partners, and Matrix Partners are also notable investors in Jupiter.

Data compiled by startup data intelligence platform TheKredible reveals that Gupta holds a significant stake of nearly 40% in the company, followed by Peak XV and Matrix Partners.

While Jupiter has witnessed growth in operating revenue, increasing from Rs 18.85 crore in FY22 to Rs 48.86 crore in FY23, the company is still experiencing losses. These losses have also grown, rising from Rs 163.94 crore in FY22 to Rs 327 crore in FY23.

Jupiter operates in a competitive neobanking market, facing established players like Niyo, Slice, and Fi (formerly epiFi).

Shifting Landscape of Fintech Regulations

In 2024, a few other fintech stages, including Mufin, Nium, and Revolut, likewise got endorsement from the RBI for PPI wallet licenses. Strangely, foodtech major Zomato deliberately gave up its installment aggregator and wallet permit around the same time. These advancements feature the developing administrative scene inside the Indian fintech area.

 

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