SUMMARY
- Jupiter neobank is in talks to acquire a 5-9.9% stake in SBM Bank India.
- The firm’s FY 2022-23 revenue reached ₹55.98 Cr, with losses growing to ₹327 Cr.
- Backed by major investors, Jupiter raised $165M and was valued at $654M in 2023.
Jupiter, a neobanking firm backed by Matrix Partners, Tiger Global, and Peak XV, is the latest fintech company considering an investment in a bank. This move reflects the ongoing trend of fintech firms exploring opportunities to enhance their market presence through strategic investments in traditional banking institutions. As the fintech landscape evolves, such collaborations may offer innovative solutions and expanded services to customers.
The Bengaluru-based firm is in early talks to purchase a 5% to 9.9% interest in SBM Bank India, a State Bank of Mauritius subsidiary, for an undisclosed sum, as reported by TechCrunch. Although the agreement with SBM Bank India has not yet been finalized, for the transaction to be finalized, the two parties must also receive approval from the Reserve Bank of India (RBI).
Jitendra Gupta founded Jupiter, provides a variety of financial services, such as UPI payments, customized savings options, mutual funds, SIPs, debit cards, and cost management. The business obtained an RBI license to operate as a prepaid payments instrument in June, enabling it to offer digital wallets for bill payment, fund transfers, and UPI transactions.
In FY 2022-23, Jupiter reported a revenue of ₹55.98 crore, with operating revenue growing more than 2.5 times to ₹48.86 crore. However, its losses mirrored this growth, standing at ₹327 crore for the year. Total expenses more than doubled to ₹382.9 crore, with employee benefit expenses being the largest contributor. Jupiter has raised $165 million in funding and, as of June 2023, was valued at $654 million.
