Jupiter Neobank raises funds from QED Investors, supplements recently raised $45 million
Jupiter, founded by fintech veteran Jitendra Gupta, is one of a wave of startups aiming to disrupt traditional banking by offering a better experience and a platform for financial services.
Nigel Morris, who earlier co-founded Capital One, one of the largest financial organisations in the United States, co-founded QED, a US-based investor.
Morris and Sandeep Patil, who joined QED last year from Truecaller to head investments in India and Southeast Asia, led QED's investment in Jupiter.
Jupiter just raised $45 million from Brazil's top neobank, Nubank, as well as other investors such as Rocket Internet, Sequoia Capital, Matrix Partners, and others.
“The round was done before QED came in, Jiten (Gupta) raised because his internal investors recommended QED and its global fintech connections highly,” said a person involved in talks.
“Nubank led this round so it was convenient for QED to establish the connection and invest with confidence,” the person added.
Jupiter launched its platform in June, 1.5 years after raising its initial round of funding, and within the first three weeks had 30,000 signups. Federal Bank serves as the backend for both Jupiter and its Sequoia-backed rival Epifi.
Epifi, which began a few months before Jupiter, nabbed consumers first, thanks to a rule that permitted customers to only have one Federal Bank account, allowing it to garner users instead of Jupiter. This has finally been straightened out with the bank, and consumers can now open accounts with both neobanks.
Jupiter is Gupta's second firm, following the $130 million sale of payment gateway Citrus Pay to Naspers-owned PayU, one of the largest startup exits at the time. Gupta raised $25 million for Jupiter from major venture capital firms such as Sequoia Capital, Matrix Partners, and former Tiger Global CEO Lee Fixel, among others.
In June, Gupta told Moneycontrol that he wants Jupiter's customer experience to be similar to that of food delivery company Swiggy, whose customer resolution via live chat has become industry standard.
After Refyne, which allows employees to access their earned wages before they are formally paid, and OneCard, a new era credit card, this is QED's third Indian venture.
For the past two years, neobanks, which have grown into multibillion-dollar businesses in Latin America, Russia, and other places, have been billed as the next big thing in the Indian IT landscape, with startups like Jupiter, Epifi, and others able to raise money only on the basis of a concept. Small businesses are served by some neobanks, such as Niyo and RazorpayX, while consumers are served by others.