Bengaluru’s innovative neobanking venture, Jupiter Secures RBI Wallet License from the Reserve Bank of India (RBI). This significant achievement empowers the startup to extend digital wallet services to its clientele, facilitating UPI payments, fund transfers, and bill payments with ease.

Unveiling the Prepaid Account Feature

With this PPI license in hand, Jupiter is poised to introduce a prepaid account feature imminently. Jitendra Gupta, the visionary founder, has affirmed that this new functionality will be accessible in the upcoming months. “The PPI capability today parallels a conventional bank account, encompassing all necessary functionalities for users to manage UPI payments and gift cards,” Gupta elucidated. “We can now incorporate a broader spectrum of users into our ecosystem, enabling them to utilize the wallet for their routine low-value transactions.”

Once users complete full KYC compliance, PPI accounts can operate almost indistinguishably from traditional bank accounts, including performing UPI payments. Customers will be able to maintain a secure account and leverage the app for UPI and related transactions. This license also opens the door for Jupiter to innovate new features for its app, which currently provides digital savings accounts, UPI payments, and financial management tools.

Jupiter’s Financial Trajectory

Jupiter has amassed $165 million through various equity funding stages and was appraised at $654 million as of June 2023, based on data from Tracxn. The company’s valuation peaked at approximately $710 million during an $86 million Series C round in December 2021. To date, the fintech has secured over $160 million in total funding, inclusive of a $12 million debt round in January 2023.

The startup reported an operating revenue of Rs 48.86 crore in FY23, a substantial increase from Rs 18.85 crore in FY22. However, its losses have also escalated, reaching Rs 327 crore from Rs 163.94 crore in the same timeframe.

Rivalry in the Neobanking Arena

Jupiter contends with other neobanking entities such as Niyo, Slice, and Fi (formerly epiFi). Notably, Slice, also supported by Tiger Global, acquired its PPI license last September.

Jitendra Gupta has adeptly navigated Jupiter to obtain two pivotal licenses, including the non-banking finance company (NBFC) license last year, permitting the firm to conduct lending operations through Amica Finance, a distinct entity.

In 2024, additional fintech platforms like Mufin, Nium, and Revolut received the RBI’s nod for the PPI wallet license, while food tech giant Zomato voluntarily relinquished its payment aggregator and wallet license.