Exclusive: Neobank Jupiter Acquires HRtech Startup sumHR To Boost Salary Account Offerings

Bengaluru-based neobank startup Jupiter has acquired HRtech startup sumHR, sources told Inc42. This is the second acquisition by the Jitendra Gupta-led fintech startup since its inception. In 2021, it acquired Y Combinator backed savings app Easyplan for an undisclosed amount.

In a statement, Jupiter told Inc42 it acquired the HRtech startup last year. sumHR is currently operating as a wholly-owned subsidiary of Jupiter, a company spokesperson said. 

sumHR founder Jay Thaker continues to head sumHR post the acquisition.

While the company didn’t disclose the financial details of the deal, Inc42 has learnt that ANME (Angel Network Middle East), one of sumHR’s seed investors, exited the company after the acquisition. 

Commenting on the rationale for the acquisition, the spokesperson said, “The acquisition has helped Jupiter, which has emerged as the largest home-grown personal finance app, to further magnify its bouquet of innovative banking solutions. Its flagship product salary account has got a significant boost due to this acquisition. Corporates can directly facilitate employees to open salary accounts through HR tools such as sumHR while leveraging low-cost HR tools with rich features. We would continue to work in the HR software ecosystem to boost salary account offering on Jupiter app.”

Founded in 2019 by serial entrepreneur Gupta, Jupiter, in partnership with Federal Bank, has developed a layer-2 neobank and offers multiple financial services such as debit cards, mutual funds, personalised savings options, expense management, UPI payments and more.

Last year, Jupiter also launched an on-demand salary service for Pro account holders to expand its offerings. It allows users with Jupiter accounts to draw an early salary in the form of a payday loan. 

Earlier this year, the startup announced raising INR 100 Cr in debt from Alteria Capital. It said it would utilise the capital to further build and scale up its lending products. 

Jupiter has raised over $169 Mn in multiple rounds till date and is backed by marquee investors such as Tiger Global, Sequoia Capital, Matrix Partners, and QED Investors.

In December 2021, Inc42 exclusively reported about Jupiter’s $87 Mn fundraise at a valuation of about $650 Mn. 

Jupiter competes against the likes of Fi Money and Niyo. According to an Inc42 report, the total neobanking opportunity stood at $48 Bn in 2022 and it is set to grow to $183 Bn by 2030, clocking a CAGR of 18% during the period. 

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