Neobanking platform Jupiter has successfully secured strategic funding from its existing investors for its non-banking financial company (NBFC) arm, Amica Finance. This marks the first equity round for Amica Finance, which operates as a separate entity.
The board of Amica Finance has approved a special resolution to issue 9,789,529 Series A compulsory convertible preferred shares (CCPS) at an issue price of Rs 20.43 per share, raising Rs 20 crore (approximately $2.4 million). According to regulatory filings with the Registrar of Companies, the funding round was led by Peak XV Partners with an infusion of Rs 5.25 crore. Matrix Partners and QED Fund contributed Rs 4.32 crore and Rs 3.58 crore, respectively. Additional investors include BEE Accelerate Fund (BEENEXT), Global Founders Capital, Tiger Global, Greyhound Capital Partners, Mirae Asset Venture Investments, and Bairavan Amrish Rau.
Amica Finance, led by Jitendra Gupta, received an NBFC license from the Reserve Bank of India (RBI) in April of the previous year, which permits the company to lend from its own book. According to media reports, Amica Finance is also planning to hire a chief executive officer (CEO) to manage the lending operations.
Post-investment, Jupiter’s founder and CEO, Jitendra Gupta, has diluted his stake to 76.15%, while Peak XV Partners has emerged as the largest external shareholder with a 6.24% stake.
Currently, the average loan tenure on Jupiter’s platform is less than six months, with a typical loan amount of Rs 30,000. The company is reportedly planning to increase its loan disbursement up to Rs 1 lakh with a maximum tenure of two years.
This development follows closely on the heels of Jupiter receiving a prepaid payment instruments (wallet) license, enabling users to perform Unified Payments Interface (UPI) transactions through the firm’s mobile application.
Jupiter was valued at around $710 million during its Series C funding round in December 2021. To date, the company has raised over $160 million from prominent investors including QED Investors, Peak XV, Tiger Global, and Matrix Partners.
In FY23, Jupiter registered a more than 2.5x growth in its operating revenue, reaching Rs 48.86 crore. However, its losses also grew at a similar pace, increasing to Rs 327 crore in FY23 from Rs 163.94 crore in FY22.
