Indian neobank Jupiter in talks to close $25m round

Jupiter, an India-based fintech startup, is in final stage of talks to close a US$25 million round of funding, sources tell Tech in Asia. This would bring the neobank’s total disclosed funding to about US$170 million, according to our database.

The fundraise is likely to close by the end of June, a person with knowledge of the matter said.

Jupiter founder and CEO Jitendra Gupta/ Photo credit: Jupiter

Existing investors including Beenext, Matrix Venture Partners, and Nubank are pouring US$20 million into the new round, the person added. Another US$5 million will come from Jupiter founder and CEO Jitendra Gupta – a move that “played a significant role in building investor confidence as the company works to close the raise,” the source notes.

However, the source also claims that Peak XV Partners (formerly known as Sequoia India and Southeast Asia), which had invested in Jupiter over several rounds, is not participating this time. Tech in Asia has contacted Peak XV for comment.

When reached by Tech in Asia, Gupta said “the round is happening at a flat valuation” but declined to elaborate as discussions ongoing.

Established in 2019, Jupiter provides digital banking solutions such as loans, credit cards, payments options, and investment tools that cater to individuals and small businesses.

Given its wide range of products and services, the fintech firm faces a host of competitors including traditional banks with digital-first offerings and neobanking platforms like Niyo and Fi Money. Jupiter also goes up against payment and lending players such as PhonePe and Paytm.

Prior to Jupiter, Gupta co-founded fintech startup Citrus Pay and was managing director of global giant PayU’s operations in India. Citrus Pay was sold to PayU for US$130 million in 2016.

The new funding round comes as Jupiter undergoes restructuring, which reportedly saw the departure of three senior executives. However, Gupta tells Tech in Asia that there are no layoffs taking place.

Jupiter’s most recent fundraise was a US$86 million series C round in 2021 at a valuation of US$710 million.

India’s fintech ecosystem remains the third-largest in the world in terms of funding despite a 35% drop during the March quarter this year, according to Tracxn data. It raised US$366 million, following behind the US and the UK.

With India’s neobanking sector projected to hit US$11.7 billion by 2025, it offers significant headroom for growth.