Jupiter

Segment – Neobank and wealth management 

About

The founder of Jupiter, Jitendra Gupta, is a CA. The business was established in 2019. The company’s main office is in Mumbai, Maharashtra, India, and serves in the B2C space.

Jupiter Bank is a neobank that offers all of the banking services provided by conventional banks, including Edge credit cards, debit cards, salary accounts, international money transfer services, mutual fund investing, and reward points for purchases.

Hummingbird Ventures, Sequoia Capital India, Global Founders Capital, Matrix Partners India, and Tiger Global raised $86 million in the Series C round of Jupiter. In April 2020, Matrix Partners India, Global Founders Capital, Sequoia Capital India, and Nubank raised $45 million in Series B. In November 2019, Hummingbird Ventures raised $24 million in a seed round.

Philosophy/key insight

Individuals can bank online. It offers money transfers, cash withdrawals, savings accounts, and NFC-enabled prepaid cards, among other things. It includes a dashboard for tracking transactions and viewing account balances. Its mobile application is available for the Android operating system

Media

Jitendra Gupta’s Jupiter neobank is all set to foray into personal lending and mutual funds this year, June 6, 2022 https://www.businessinsider.in/business/startups/news/jitendra-guptas-jupiter-bank-is-all-set-to-foray-into-personal-lending-mutual-funds-this-year/articleshow/91369123.cms

Jupiter, a digital banking startup, intends to launch its wealth management solutions between July and September of 2022. The company intends to increase user engagement, provide investment options, and launch consumer lending services to assist customers in monetizing the platform. In June, Jupiter will introduce a credit line offering, and in July, it will introduce a personal loan offering for current customers. To differentiate itself, the company will offer credit lines and loans to its one million customers, allowing Jupiter to better understand their credit profiles. Retail investors may be able to access mutual funds as early as September. Jupiter intends to compete in the wealth management space with startups such as Zerodha, Groww, Upstox, Paytm Money, and Mobikwik.

Up to 42% of new customers to date have had zero acquisition costs. Jupiter’s Jitendra Gupta, February 7, 2023 https://www.moneycontrol.com/news/business/startup/up-to-42-of-new-customers-till-date-come-at-zero-acquisition-costs-jupiters-jitendra-gupta-10025141.html

Apart from traditional core business fundamentals, the neobank founder believes that for businesses such as neobanks and lending platforms to succeed and grow, customer acquisition costs must be capped and better strategized. Jitendra Gupta, the founder of Neobank Jupiter, emphasized the importance of content marketing in attracting customers at zero customer acquisition costs (CAC), with content marketing accounting for 40–42% of new customers. Gupta believes that for neobanks and lending platforms to succeed, effective CAC management is required. He stated that Jupiter’s CAC threshold of $5–6 is $5–6 per customer, whereas traditional banks’ CAC threshold is $12–15. Diversification beyond deposits, including lending and fees, is critical for the survival of neobanks. Despite Tiger Global’s support, Jupiter lost Rs 164 crore in FY22, offsetting Rs 40 lakh in operating revenue. Alteria Capital provided Jupiter with Rs 100 crore in venture debt for expansion.

Prepared by – Ajinkya, July 2023