Jupiter’s NBFC Arm Raises $2.4 Million in Maiden Equity Round
- ByStartupStory | June 22, 2024
Neobanking platform Jupiter has successfully raised $2.4 million (Rs 20 crore) in strategic funding for its non-banking financial company (NBFC) business, Amica Finance. This marks the first equity round for Amica Finance, a separate entity from Jupiter, following the company’s recent acquisition of an NBFC license from the Reserve Bank of India (RBI) in April last year.
According to regulatory filings with the Registrar of Companies, the board at Amica Finance passed a special resolution to issue 97,89,529 Series A compulsory convertible preferred shares (CCPS) at an issue price of Rs 20.43 per share. Peak XV Partners led the round with an infusion of Rs 5.25 crore, followed by Matrix Partners and QED Fund contributing Rs 4.32 crore and Rs 3.58 crore, respectively. Additional contributions came from BEE Accelerate Fund (BEENEXT), Global Founders Capital, Tiger Global, Greyhound Capital Partners, Mirae Asset Venture Investments, and Bairavan Amrish Rau.
As per the startup intelligence platform TheKredible, this fresh funding round values Amica Finance at approximately Rs 100 crore ($12 million) post-money. Following the investment, Jupiter’s founder and CEO Jitendra Gupta diluted his stake to 76.15%, while Peak XV Partners emerged as the largest external shareholder with a 6.24% stake.
Jupiter’s NBFC platform primarily focuses on short-term loans, with an average loan tenure of less than six months and a ticket size of Rs 30,000. However, the company plans to increase the loan amount to up to Rs 1 lakh with a maximum tenure of two years.
This development comes shortly after Jupiter received a prepaid payment instruments (wallet) license, enabling users to perform Unified Payments Interface (UPI) payments through the firm’s mobile application.
Jupiter was last valued at approximately $710 million during its Series C funding round in December 2021. To date, the company has raised over $160 million from prominent investors, including QED Investors, Peak XV, Tiger Global, and Matrix Partners.
The Jitendra Gupta-led company has shown significant growth, registering more than 2.5x increase in its operating revenue to Rs 48.86 crore in FY23. However, the company’s losses have also grown at a similar pace, reaching Rs 327 crore in FY23, up from Rs 163.94 crore in FY22.
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