Exclusive: Jupiter’s NBFC biz raises funds from Peak XV, Matrix, others

Neobanking platform Jupiter has raised strategic funding from its existing investor for its non-banking financial (NBFC) biz. This is the maiden equity round for Amica Finance which is a separate entity.

The board at Amica Finance has passed 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 to raise Rs 20 crore or $2.4 million, as per the company’s regulatory filings with the Registrar of Companies.

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. BEE Accelerate Fund (BEENEXT), Global Founders Capital, Tiger Global, Greyhound Capital Partners, Mirae Asset Venture Investments and Bairavan Amrish Rau poured in the remaining sum.

The Jitendra Gupta-led company obtained an NBFC license from RBI in April last year which lets it lend on its own book. As per a media report, it will also hire a chief executive officer (CEO) to run the lending biz.

As per the startup intelligence platform TheKredible, the company has raised fresh funds at a post money valuation of around Rs 100 crore ($12 million).

Following the investment round, Jupiter’s founder and CEO Gupta diluted his stake to 76.15% while Peak XV Partners became the largest external shareholder with 6.24% stake. For the firm’s complete shareholding pattern, visit TheKredible.

Currently, the average loan tenure on Jupiter’s platform is less than six months with a ticket size of Rs 30,000 but it’s reportedly eyeing to disburse up to Rs 1 lakh to borrowers with maximum tenure of two years.

The development comes soon after Jupiter received prepaid payment instruments (wallet)  license which enables users to perform UPI payments through the firm’s mobile application.

Jupiter was last valued at around $710 million in its Series C round in December 2021. It has raised over $160 million to date from the likes of QED Investors, Peak XV, Tiger Global and Matrix Partners.

Jupiter registered more than 2.5x growth in its total revenue to Rs 48.86 crore in FY23. However, its losses grew at a similar pace and stood at Rs 327 crore in FY23 from Rs 163.94 crore in FY22.