Neobank’s Rising in India – Jupiter Raises $86 Million Funding

According to the filings made with the Registrar of Companies, Mumbai-based fintech Jupiter has raised $86.6 million in a Series C round of funding headed by New York-based hedge fund Tiger Global, Sequoia Capital, and Virgina-based QED Investors (RoC). According to reports with Series C round, Jupitor is now  valued at  $711 million. Earlier Jupiter has secured $44 million funding in Series B round led by Sequoia Capital, Brazil’s Nubank, Global Founders Capital, Matrix Partners.  Series B funding was in August and Jupiter was valued @ $300 million

The current round of investment is led by Matrix Partners, Beenext, , Rocket Internet Capital, Nubank, GFC Global Founders Capital, Mirae Asset Fund, Mitsubishi’s MUFG Innovation Partners and others. Jupiter is a digital banking platform founded in 2019.  In cooperation with Federal Bank and Axis Bank, it allows users to open bank account digitally, distributes Visa debit cards, and gives analytics on consumer purchases.

Jupiter is building customer focussed business. It has created a number of products for e.g.  buy now, pay later with UPI, selecting the proper card, determining existing health insurance coverage, etc.

Jitendra Gupta  is the CEO of Jupitar. After selling CitrusPay to Naspers-owned PayU in 2016 for $130 million, Jupiter is Gupta’s second business. CitrusPay is still regarded as one of the largest exits of its time in the fintech space in India.

Apart from Jupiter, India presently has more than a half-dozen neobanks vying for market share in the BFSI industry, including RazorPay, PayZello, YeLo,  Open, NiYO, Hylo, , InstaDApp, ChqBook, Walrus, FamPay, etc

According to Kbv research the Global Neobanking Market may grow @ 47.1% CAGR and may become more than $333 billion in size by 2026. Report highlights that In 2019, the Europe held the largest proportion of the neobanking market. This expansion can be attributed to several innovative technologies as well as the adoption of new technology in European region. In addition, companies want to introduce product platforms and build partnerships in order to strengthen their market position. According to the report, Asia Pacific market is expected to develop at the fastest rate of 49.2 percent during the forecast period (2020 – 2026).

Brazil’s Nubank is the example, how fintech ecosystem may evolve in future. Nubank was founded with the goal of simplifying the financial system and restoring people’s authority over their money. Nubank recently got listed and commands a market cap closer to $50 billion.

Banking is facing disruption from new age Fintech players. Though the space is evolving but one of thing is certain that some of the traditional banks may face stiff competition from the fintech players, if the new age fintech players also succeed in building strong liability franchisee.   

Bureau Galactik Views

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