Bengaluru-based startup Jupiter gets RBI nod for prepaid payments instrument license. This means users can now make UPI payments and transfer money through Jupiter’s digital wallets.
It already provides digital savings accounts with features like real-time spending insights, tracking assets across different accounts, setting personal savings goals, and sending or receiving money via UPI.
Jupiter Gets RBI Nod For Prepaid Payments Instrument License
Jupiter has received a prepaid payments instrument (PPI) license from the Reserve Bank of India. This license allows Jupiter, a Bengaluru-based startup, to offer digital wallets to its users. With these digital wallets, users can make UPI payments, transfer money, and pay bills.
Founder of Jupiter, Jitendra Gupta, confirmed the approval and said the company plans to introduce a prepaid account facility in the coming months. Gupta explained that PPI functionality is similar to a bank account, providing all necessary features for UPI payments and gift cards. He also said that this new feature will help Jupiter bring in more users who can use the digital wallet for everyday small purchases.
Jupiter Expands Services with New License
Jupiter has received a prepaid payments instrument (PPI) license from the Reserve Bank of India, allowing it to offer new features on its app. It now offers digital savings accounts, UPI payments, and tools to help manage your money.
With the PPI license, Jupiter can now create new uses for its app. Users with full KYC accounts can do almost everything a bank account can, including making UPI payments. Founder Jitendra Gupta mentioned that customers can safely use the app for UPI and similar transactions. Last year, Jupiter, through its separate entity Amica Finance, received a non-banking finance company (NBFC) license to offer direct loans. As of June 2023, the company was valued at $654 million.
Jupiter’s Funding and Valuation
Jupiter has raised $165 million from investors, including QED Investors, Matrix Partners, Nubank, and MUFG Bank. Founder Jitendra Gupta holds nearly 40% of the company. With over 2 million active customers, Jupiter competes with Slice, Fi Money, and Niyo in the neobanking market. In FY23, Jupiter’s revenue increased to Rs 48.86 crore from Rs 18.85 crore the previous year, according to TheKredible. However, its losses grew to Rs 327 crore from Rs 163.94 crore.
Second Major License for Founder
Jupiter has teamed up with Slice, another company based in Bengaluru, in the digital payments ecosystem. Slice, also supported by Tiger Global, received its PPI license last September. This is the second important license for Jupiter’s founder, Jitendra Gupta. Last year, Amica Financial Technologies, the company behind Jupiter, got a license from the RBI to operate as a non-banking finance company (NBFC). The lending operations will be managed under Amica Finance, a separate entity.
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