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Jupiter secures RBI licence for digital wallet operations

Friday 14 June 2024 11:47 CET | News

Jupiter, a neobanking platform, has been granted a Prepaid Payment Instruments (PPI) licence by the Reserve Bank of India (RBI), as announced by the regulatory body.

 

This licence enables Jupiter to offer digital wallets to its users, facilitating UPI payments. Currently, Jupiter provides digital savings bank accounts that include features such as real-time spend insights, tracking of liquid assets across multiple bank accounts, personalized savings goals, and the ability to send and receive funds via UPI.

Earlier, Jupiter had acquired a non-banking finance company (NBFC) licence from the RBI, allowing it to lend from its own book. The company, led by Jitendra Gupta, has received backing from investors including Tiger Global, QED Investors, Peak XV Partners, and Matrix Partners. Notably, Jupiter was valued at approximately USD 710 million following its USD 86 million Series C funding round in December 2021. To date, it has raised over USD 160 million, including a USD 12 million debt in January 2023.

 

According to startup data intelligence platform TheKredible, Jitendra Gupta holds a significant ownership stake of nearly 40% in Jupiter, with Peak XV and Matrix Partners also holding substantial stakes.

In the fiscal year 2022-23, Jupiter reported operating revenues of Rs 48.86 crore, up from Rs 18.85 crore in the previous fiscal year. However, its losses widened to Rs 327 crore from Rs 163.94 crore during the same period.

Jupiter competes in the neobanking sector with companies like Niyo, Slice, and Fi (formerly epiFi). Recently, other fintech platforms such as Mufin, Nium, and Revolut also received RBI approval for PPI wallet licences in 2024. In contrast, Zomato opted to voluntarily surrender its payment aggregator and wallet licence.

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Keywords: banking license, digital banking, compliance, lending
Categories: Payments & Commerce
Companies: Reserve Bank of India
Countries: India
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Payments & Commerce

Reserve Bank of India

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