Neobanking startup Jupiter Money gets RBI's nod to start prepaid wallet business

Jitendra Gupta, Founder and CEO, Jupiter

Tiger Global-backed neobanking startup Jupiter has received the final authorisation from Reserve Bank of India (RBI) to offer digital wallet to customers for UPI payments, money transfers and other such transactions.

"With this final approval, we shall soon be introducing Jupiter Prepaid Account facility to our users in coming months," the company said in a statement on June 13 after the RBI allowed it to issue prepaid payment instruments (PPIs).

At present, Jupiter offers digital savings accounts in partnership with Federal Bank and CSB Bank, with add-on features like UPI payments, co-branded credit cards, loans (co-lending), spend and asset trackers, personalised goals saving feature and so on.

The prepaid account will allow Jupiter to offer its customer facilities almost similar to that of a bank account.

"PPI functionality today is almost equal to a bank account and has all the required facilities for a user to operate the account for most types of payments ie UPI payments and gift cards," founder and CEO Jitendra Gupta said.

"Through PPI, we intend to increase our user base significantly wherein users want to use accounts only for UPI and similar transaction purposes and operate a safe and risk free account."

The company, via separate entity Amica Finance, received a non-banking finance company licence last year to offer direct loans.

Valued at $654 million as of June 2023, the Peak XV Partners-backed venture has, so far, raised $165 million across multiple equity and debt rounds.

It also counts QED Investors, Matrix Partners, Nubank, and MUFG Bank as its investors, with Gupta holding nearly 40 percent stake in the company. Jupiter, which claims to have over 2 million active customers, competes with the likes of Slice, Fi Money and Niyo in the neobanking space.

In FY23, Jupiter’s revenue came in at Rs 48.86 crore, up from Rs 18.85 crore in the previous year, TheKredible data showed. Its losses, however, surged to Rs 327 crore from Rs 163.94 crore.