Indian neobank Jupiter has raised $45 million in a new funding round, its founder and CEO announced Thursday (Aug. 5).
As reported by India’s Economic Times, the new funding round was led by the Brazilian FinTech Nubank and Global Founders Capital, along with existing investors Sequoia Capital and Matrix Partners, with a minority stake held by South Korea’s Mirae Asset.
A neobank is an institution that functions like a bank and is backed by a traditional banking institution while also offering other services that caters to a niche audience. Jupiter is one of several startups in this sector.
Jupiter CEO Jitendra Gupta has raised more than $25 million in seed funding from investors and is “working on a bouquet of products to drive financial wellness for consumers” and help them reach their financial goals, according to the report.
“Nubank and Jupiter share the mission of making banking the best experience possible for our customers, putting an end to all the bureaucracy and the pain in the current system,” David Vélez, chief executive and founder of Nubank, told the newspaper.
“The Indian and Brazilian markets have many similarities, and through this investment, we aim to support Jupiter in their growth path,” he said. “We see a lot of potential and are excited about joining them so early on their journey.”
Last month, an Indian neobank called NiYO Solutions announced it had raised $35 million in a funding round to help it add more products and expand beyond its region.
Based in Bangalore, NiYO serves blue-collar workers in India who struggle to get necessary financial products from banks that usually serve higher-income clientele.
Yet these aren’t the largest funding rounds involving neobanks in India these days. As ET points out, another neobank, Open, has reportedly engaged in talks to close a $100 million to $120 million funding round led by Google, Amazon and Visa.