Neobanking platform Jupiter has been granted a Prepaid Payment Instruments (PPI) license, commonly known as a wallet license, by the Reserve Bank of India (RBI). This development, confirmed by a notification from the RBI, enables Jupiter to provide digital wallets to its users, facilitating seamless Unified Payments Interface (UPI) transactions.
With this new capability, Jupiter will expand its financial services, adding to its current suite that includes digital savings bank accounts with advanced money management tools. These tools offer real-time spending insights, tracking of liquid assets across different bank accounts, personalized savings goals, and the ability to send and receive funds via UPI.
Jupiter, led by Jitendra Gupta, had already strengthened its financial services portfolio by securing a non-banking finance company (NBFC) license from the RBI, allowing it to lend from its books. This strategic move complements its latest PPI license, positioning Jupiter to offer a comprehensive range of financial services.
The neobank has shown significant growth and investor confidence. Backed by Tiger Global, Jupiter achieved a valuation of approximately $710 million during an $86 million Series C funding round in December 2021. To date, the company has raised over $160 million, including a $12 million debt round in January 2023. Other notable investors include QED Investors, Peak XV Partners, and Matrix Partners, with Gupta holding nearly 40% of the company’s stake.
Jupiter reported an impressive increase in operating revenue, rising to Rs 48.86 crore in FY23 from Rs 18.85 crore in FY22. However, its losses also grew to Rs 327 crore from Rs 163.94 crore during the same period. Despite these losses, the company remains competitive in the neobanking space, going head-to-head with rivals such as Niyo, Slice, and Fi (formerly epiFi).
The fintech landscape in India has seen other significant developments in 2024, with platforms like Mufin, Nium, and Revolut also receiving PPI wallet licenses from the RBI. In contrast, food tech giant Zomato has opted to voluntarily surrender its payment aggregator and wallet license, indicating a strategic shift away from fintech services.
As Jupiter continues to innovate and expand its services, the PPI license from the RBI marks a critical step in enhancing its digital banking capabilities, offering users more flexibility and convenience in managing their finances.
