Neobanking startup Jupiter raises Rs 100 crore in venture debt from Alteria Capital
- ByStartupStory | January 5, 2023
Neobank Jupiter has raised Rs 100 crore (about $12.5 million) in venture debt from Alteria Capital as the Tiger Global-backed startup looks to scale and expand lending products with neobanking penetration low in India.
The venture debt transaction, the first of its kind in the space, would help the startup leverage synergies across the Jupiter Group. Jupiter would roll out multiple investments and credit-focused products in 2023 that would broaden the neobanking platform’s basket of financial offerings, the report said. The company’s focus to expand offerings comes at a time when the neobanking startup, just like its peers, is struggling to generate revenue.
Jitendra Gupta, Jupiter founder and CEO stated, “This partnership will act as a catalyst to our efforts of building an all-inclusive and innovative platform. For cutting-edge financial services products. As we enter the new year, we at Jupiter look forward to providing accessible and affordable credit options to our customers, thereby creating a healthy credit growth in the country.”
In 2022, neobanks were a hot sector, which attracted investments worth more than $1 billion from venture capital firms across the globe, according to data by Tracxn. Neobanks offer a fully digital platform to customers and typically are mobile-first banks. Razorpay and IND money and many fintech firms have entered the neobanking space as it became popular in the country as a result of pandemic-led lockdowns which has given a boost to digital banking.
About Juipter
Founded by Jitendra Gupta, a second-time entrepreneur and former banker, Jupiter provides a platform with a simplified user interface that allows users to deposit and withdraw funds. Jupiter managed to generate revenue of just Rs 40 lakh in FY22, the second full year of its operations. The company has raised more than $130 million in two funding rounds in 2021, increasing its valuation from $100 million to over $700 million.
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