Jupiter’s NBFC arm Amica Finance receives funding from Peak XV Partners, Matrix Partners, others

Neobanking startup Jupiter has raised Rs 20 crore or approximately $2.4 million in strategic funding from its existing investors for its non-banking financial (NBFC) business, Amica Finance. 

This marks the inaugural equity round for Amica Finance, a separate entity under Jupiter.

The board at Amica Finance has passed a special resolution to issue 97,89,529 Series A compulsory convertible preferred shares (CCPS) at an issue price of Rs 20.43 per share to raise Rs 20 crore or $2.4 million, Entrackr reported citing the company’s regulatory filings with the Registrar of Companies.

Who are the investors?

Peak XV Partners led the funding round with an infusion of Rs 5.25 crore. Matrix Partners and QED Fund followed with contributions of Rs 4.32 crore and Rs 3.58 crore, respectively. 

Other investors included BEE Accelerate Fund (BEENEXT), Global Founders Capital, Tiger Global, Greyhound Capital Partners, Mirae Asset Venture Investments, and Bairavan Amrish Rau, who collectively provided the remaining amount.

Receiving NBFC license

In April of last year, Jupiter received an NBFC license from the Reserve Bank of India (RBI), allowing it to lend from its own book. This new capability means Jupiter can expand its lending operations.

While there is no official announcement regarding the fundraising, the report said that the company has raised funding at a post-money valuation of around Rs 100 crore.

Jitendra Gupta's stake dilution

Following the investment round, Jupiter’s founder and CEO, Jitendra Gupta, diluted his stake to 76.15%. Peak XV Partners emerged as the largest external shareholder with a 6.24% stake, the report said.

Jupiter's current average loan tenure is less than six months with a ticket size of Rs 30,000. However, the company aims to disburse loans up to Rs 1 lakh with a maximum tenure of two years.

The strategic funding round comes shortly after Jupiter obtained a prepaid payment instruments (wallet) license, enabling users to perform UPI payments through its mobile application.