Neobanking startup Jupiter has raised close to $87 Mn in a new round of investment led by Tiger Global, in participation with QED Investors, Sequoia India and Matrix Partners.
BEENEXT, Rocket Internet, Mirae Asset Ventures, 3One4 Capital, and Nubank also participated in this round of funding.
As per Inc42’s estimate, the startup raised the new round of investment at $655 Mn – $700 Mn valuation.
This seems to be part of Jupiter’s Series C round which is expected to be worth $100 Mn. The startup is likely to raise the remaining $13 Mn in a secondary sale, by giving partial exits to its early investors.
ET had earlier reported about Jupiter’s $100 Mn raise from Tiger Global.
The fresh round of funding comes almost four months after the startup bagged $44 Mn in its Series B round led by Brazil-based neobank Nubank. Back then, the round also saw participation from Global Founders Capital, Sequoia Capital India, and Matrix Partners India. With the Series B round of investment, the startup valuation soared to $300 Mn.
Founded in 2019 by former PayU India CEO and Citrus Pay cofounder— Jitendra Gupta, Jupiter offers a 100% digital savings bank account with in-built money management features including real-time spend insights, tracking liquid assets across bank accounts, personalised savings goals, and sending/receiving funds via UPI. The neobank offers the savings account feature in association with Federal Bank and Axis Bank.
Gupta had sold Citrus Payments to PayU in a $130 Mn deal in 2016 and moved to the payment gateway company as part of the deal. He helmed the launch of PayU’s pay-later product Lazypay during his stint there.
The neobanking space in the country is growing at an unprecedented pace. Jupiter is competing against the likes of Hylo, PayZello, InstaDApp, YeLo, ChqBook, FamPay, Walrus, epiFi, Finin and RazorPay X among others.
Going by the fundraising trends, it seems, this year, neobank startups have been raising bigger cheques. Earlier this year, Open, a neobank which is now eyeing for an unicorn tag, mopped $100 Mn from SBI Investment, Temasek, Tiger Global and Google. Last month, another neobank startup Fi bagged $50 Mn from Falcon Edge and B Capital at a valuation of $315 Mn.
In 2021, fintech was the second highest funded sector which raked around $7.4 Bn in funding across 260 deals until December 4 ,2021.