India-Based Digital Banking App Jupiter Raises $86 Million
When the book closes on 2021, it will surely show a record-smashing year in terms of FinTech deals. And while there have been plenty of big funding rounds from stateside startups, companies around the world have also seen success in attracting investors. The latest example of this is India-based neobank Jupiter, which just recently raised its second round of 2021.
As TechCrunch reports, Jupiter recently closed an $86 million funding round. The Series C was co-led by Tiger Global, QED, and Sequoia Capital India while Japanese bank MUFG Bank also participated. Notably, the round valued the company at $711 million, marking a $300 million increase in valuation compared to the neobank’s Series B back in August. To date, the startup has now raised a total of $155 million.
Since debuting in beta this summer, Jupiter has reportedly gained nearly half a million users and is adding new customers at a clip of 5,000 per day. Moreover, according to the company’s founder and CEO Jitendra Gupta, the neobank’s transaction volume has been doubling month over month, putting them on track for nearly $60 million in transactions in December. So far, 65% of the app’s users are also transacting with their account on at least a monthly basis.
Similar to what neobanks in America have to offer, Jupiter’s site advertises such features as auto-savings, spending insights, and more. Additionally, the neobank offers a debit card product that earns customers 1% cashback on purchases. Meanwhile, the account’s fee schedule shows only a handful of fees and notes that the company strives to be “fair and transparent” with its pricing.
Looking ahead, Gupta says that the company plans to launch lending features in Q2 of next year. Jupiter also expects to introduce investment products on its platform sometime in 2022. Speaking to TechCrunch, Gupta expressed enthusiasm for the startup’s future, stating, “We have sufficient capital to use. We are confident to reach at least 2 million users by the end of next year.”
Just as neobanking has taken off in the United States and Europe, Jupiter’s success shows that the concept is catching on in India as well. It’s also interesting to see how similar the company’s marketing materials are to those one might find for domestic FinTechs — with the only major difference being the currency listed. Overall, this latest funding round news drives home the point that FinTech and its trends truly are global. As we head into a new year, expect to see many other international startups making headlines as well.