Neobanking platform Jupiter has successfully raised $2.4 million in strategic funding for its non-banking financial company (NBFC) business, Amica Finance. This marks the maiden equity round for Amica Finance, a separate entity, as disclosed in the company’s recent regulatory filings with the Registrar of Companies.
The funding round involved the issuance of 9,789,529 Series A compulsory convertible preferred shares (CCPS) at an issue price of Rs 20.43 per share, totaling Rs 20 crore ($2.4 million). Peak XV Partners led the round with an infusion of Rs 5.25 crore, followed by Matrix Partners and QED Fund with Rs 4.32 crore and Rs 3.58 crore, respectively.
Additional investors included BEE Accelerate Fund (BEENEXT), Global Founders Capital, Tiger Global, Greyhound Capital Partners, Mirae Asset Venture Investments, and Bairavan Amrish Rau.
Amica Finance, which received its NBFC license from the Reserve Bank of India (RBI) in April last year, is now authorized to lend on its own books. According to media reports, the company plans to appoint a new chief executive officer (CEO) to manage its lending operations.
TheKredible, a startup intelligence platform, reported that this latest funding round values the company at approximately Rs 100 crore ($12 million) post-money. Following this investment, Jupiter’s founder and CEO Jitendra Gupta has diluted his stake to 76.15%, with Peak XV Partners emerging as the largest external shareholder with a 6.24% stake.
Currently, Jupiter’s platform offers loans with an average tenure of less than six months and a ticket size of Rs 30,000. However, the company aims to extend loan amounts up to Rs 1 lakh with a maximum tenure of two years.
This funding milestone coincides with Jupiter securing a prepaid payment instruments (wallet) license, allowing users to perform UPI payments via the firm’s mobile application.
In its Series C round in December 2021, Jupiter was valued at around $710 million. To date, the company has raised over $160 million from investors such as QED Investors, Peak XV, Tiger Global, and Matrix Partners.
Financially, Jupiter reported more than 2.5x growth in its operating revenue, reaching Rs 48.86 crore in FY23. However, its losses also increased significantly, doubling to Rs 327 crore in FY23 from Rs 163.94 crore in FY22.
This strategic funding is expected to bolster Amica Finance’s operations and growth, enhancing its ability to serve a broader customer base with improved financial products a
