Jupiter in talks for $100-million funding, valuation may double

Jupiter in talks for $100-million funding, valuation may double

Neobank is in talks with US-based venture fund QED Investors to co-lead a new $100-million funding round along with its existing investor Sequoia Capital India, people briefed on the matter said. New York-based Tiger Global, one of the most aggressive venture investors in India, is also in talks with Jupiter to participate in the funding round, they said. If the deal goes through, Jupiter’s valuation will more than double to around $700 million, sources said.

This comes just three months after Jupiter, founded by Jitendra Gupta — who had founded Citrus Pay and later sold it to Prosus fintech arm PayU — closed a $45 million funding from Brazil’s neobank major NuBank and others.

QED Investors, founded by Nigel Morris, who is also the founder of Capital One Financial Services, is a fintech focused investor and recently announced closing of two funds with a total capital of more than $1 billion to back startups across stages in the US and globally. It is an investor in leading fintech firms like Nubank, SoFi, and Klarna among others. In India, QED has backed a salary app Refyne. Jupiter is expanding its digital savings bank account and other offerings to young professionals after being in beta for a few months. It has now opened its platform to all users through invites.

“QED and Sequoia are likely to lead the new round, while the conversation with Tiger Global is underway. There is a lot of interest in the consumer-facing neo banks offering digital savings bank accounts and financial guidance on saving, loans etc,” a person aware of the matter said.

beta was released in June this year when it saw more than 1.5 lakh requests from users for early access within the first two weeks of launch. Gupta-led Jupiter is now aiming to on-board one million users by the end of this year.

In a statement last week, Jupiter said that it is seeing more than 3,000 new customers joining the platform and saw deposits of over Rs 100 crore from consumers in the past one month.


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When contacted, Gupta declined to comment on his latest funding discussions, while emails sent to Sequoia Capital India, QED and Tiger Global did not elicit any response till press time Tuesday.

Earlier on Monday, ET
reported saying neobank Fi, started by former Google Pay executives, has raised $50 million in a new round led by B Capital after which its valuation shot up to $315 million.

Neobanks like Jupiter and Fi partner with a bank which powers the core savings account being provided and then these platforms offer their own solutions to digitally-savvy consumers. For example, Jupiter, through Money Pots, nudges users to save money and plan for a trip or buy electronics. Jupiter has partnered with Federal Bank and Visa to issue zero-balance savings accounts and debit cards.

“Banking requirements are evolving at a fast pace, especially for the younger audience. Today, consumers don’t see banks as a place where you go but it’s what you do with your money… At Jupiter, we are approaching the banking experience with the mindset of an internet company by offering instant resolution to their needs,” Gupta had said.

Besides NuBank, which was valued at $30 billion in June after Berkshire Hathaway invested in it, Jupiter counts Global Founders Capital, Matrix Partners, 3one4 Capital, and Mirae Asset among its existing investors.

Gupta started Jupiter in 2019 and the back-to-back funding interest in his startup is also a reflection of the unprecedented year 2021 has been for startups in terms of the capital being pumped into the sector. As much as $26 billion of venture capital investment has come into startups as of October 7, according to an IVCA-Preqin report.

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