Exclusive: Neobanking platform Jupiter raises debt from Alteria

Update: Neobanking platform Jupiter has raised Rs 100 crore from debt financing firm Alteria Capital. The funds will be used for further building and scaling up its lending products.

Original story follows:

Neobanking platform Jupiter has raised Rs 25 crore debt from Alteria Capital. This is the first fundraise for the Mumbai-based company in 2022.

The board at Jupiter has passed a special resolution to issue and offer 2,500 Series A non-convertible debentures (NCD) at an issue price of Rs 1,00,000 per debenture to Alteria Capital for a consideration of Rs 25 crore, as per the company’s regulatory filing with the Registrar of Companies (RoC).

The company will use the funds for general corporate activities, filing shows.

Founded by Jitendra Gupta, Jupiter offers digital savings bank accounts with in-built money management features like real-time spend insights, tracking liquid assets across bank accounts, personalized savings goals, and sending/receiving funds via UPI. The platform has onboarded close to 800,000 users as of March and has partnered with the Federal Bank to provide bank accounts to its customers.

During FY22, Jupiter generated merely Rs 42 lakh in revenue from operations as compared to around Rs 20k in FY21. The company made most of its revenue via penalty income during the last fiscal. As per the annual financial statement with the RoC, losses of the company shot up 11X to Rs 164 crore in FY22 from Rs 14.2 crore during the preceding fiscal year.

In March, Jupiter announced employee stock options plan (ESOP) buyback worth $4 million for its former and current employees. The company has raised over $160 million to date including $86 million in a Series C round at a valuation of $710 million in Dec last year.

Jupiter competes with the likes of Niyo, Slice, Fi (formerly epiFi) et al.