Jupiter Boosts Salary Account Offerings by Acquiring HRtech Startup sumHR

• ByStartupStory     |    February 17, 2023

Jupiter, the neobank startup based in Bengaluru, has reportedly acquired HRtech startup sumHR, as per sources. This marks Jupiter’s second acquisition, following its purchase of savings app Easyplan, which was backed by Y Combinator, in 2021. Although the financial details of the sumHR acquisition have not been disclosed, the HRtech firm is said to be currently operating as a wholly-owned subsidiary of Jupiter.

After the acquisition, sumHR’s founder Jay Thakur remains in charge of the company. Although the financial terms of the deal have not been made public, it has been revealed that ANME (Angel Network Middle East), which was one of the startup’s seed investors, has departed from the company. This information comes from sources familiar with the matter. 

Jupiter’s spokesperson has stated that the acquisition of sumHR has enabled the neobank startup to expand its range of innovative banking solutions. As the largest home-grown personal finance app, Jupiter’s salary account has been given a significant boost. 

The acquisition allows corporates to offer their employees salary accounts directly through HR tools like sumHR, while taking advantage of low-cost HR solutions with advanced features. Jupiter plans to continue working in the HR software ecosystem to enhance its salary account offering on its app.

Jupiter, which was established in 2019 by serial entrepreneur Jitendra Gupta, has collaborated with Federal Bank to create a layer-2 neobank. The Bengaluru-based startup provides a variety of financial services, including debit cards, mutual funds, customized savings choices, expense management, and UPI payments.

Jupiter introduced an on-demand salary service for Pro account holders in 2022 as part of its expansion efforts. This feature allows Jupiter account users to access an early salary via a payday loan. In addition, the Bengaluru-based neobank startup secured INR 100 Cr in debt from Alteria Capital earlier this year, with plans to utilize the funds for the development and expansion of its lending products.

Jupiter has secured more than $169 Mn through various funding rounds and has garnered support from renowned investors like Tiger Global, Sequoia Capital, Matrix Partners, and QED Investors. In December 2021, it is exclusively revealed that Jupiter had raised $87 Mn at a valuation of approximately $650 Mn.

Jupiter competes with other neobanks like Fi Money and Niyo.  the neobanking market’s overall value was $48 Bn in 2022, and it is projected to expand to $183 Bn by 2030, growing at a CAGR of 18% during the period.

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