NBFC neobanking platform Jupiter raised funds from Peak XV, Matrix, others
For its non-banking financial (NBFC) business, Jupiter, a neobanking platform, has secured strategic funding from an existing investor. For Amica Finance, a distinct company, this is the first equity round.
In order to raise Rs 20 crore, or $2.4 million, the board of Amica Finance has approved 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, according to the company’s regulatory filings with the Registrar of Companies.
With an investment of Rs 5.25 crore, Peak XV Partners spearheaded the round, followed by Matrix Partners and QED Fund with contributions of Rs 4.32 crore and Rs 3.58 crore, respectively. The remaining amount was contributed by Greyhound Capital Partners, Bairavan Amrish Rau, Global Founders Capital, BEE Accelerate Fund (BEENEXT), Tiger Global, and Mirae Asset Venture Investments.
The Jitendra Gupta-led business was granted an NBFC license by the RBI in April of last year, enabling it to make loans from its own book. According to a media report, it will appoint a chief executive officer (CEO) to oversee the lending division as well.
According to the media, the business has raised new capital at a post-money valuation of about Rs 100 crore ($12 million).
Peak XV Partners emerged as the biggest external shareholder with a 6.24% stake after Jupiter’s founder and CEO, Gupta, diluted his stake to 76.15% following the investment round.
At present, the mean loan duration on Jupiter’s platform is under six months, with a ticket size of Rs 30,000. However, it is purported that the company intends to award up to Rs 1 lakh to borrowers with a two-year maximum tenure.
The announcement coincides with Jupiter’s recent license for prepaid payment instruments, or wallets, which allows customers to make UPI payments via the company’s mobile app.
In December 2021, Jupiter’s Series C round valuation was approximately $710 million. Thus far, it has garnered more than $160 million from various investors, including QED Investors, Peak XV, Tiger Global, and Matrix Partners.
In FY23, Jupiter’s operating revenue increased by more than 2.5 times, reaching Rs 48.86 crore. Its losses, however, increased at a comparable rate and were Rs 327 crore in FY23 as opposed to Rs 163.94 crore in FY22.
