Neobank Jupiter secures NBFC licence and plans to generate loans to expand its lending operations

By Team Startupcity  |  Wednesday, 26 April 2023, 15:43 IST

Neobank Jupiter secures NBFC licence and plans to generate loans to expand its lending operations
Jupiter, a neobanking startup, has obtained an NBFC licence from the Reserve Bank of India (RBI), which would enable it to disburse credit from its books. According to Jitendra Gupta, who founded the startup's operating company, Amica Financial Technologies Ltd. in Bengaluru, Jupiter will appoint a qualified chief executive officer to lead the NBFC. Jupiter, which had previously been scaling its lending activities through partner NBFCs, should take note of the move.
Jupiter, which is funded by Sequoia and Tiger Global, plans to seek an additional Rs 100 crore in debt to finance the NBFC's credit operations in addition to capitalising the lending business with about Rs 100 crore. It plans to award short- and medium-term personal loans around Rs 600–700 crore annually.
The NBFC will reside under Amica Finance, a different organisation. In light of recent regulatory changes regarding digital lending, according to Gupta, the development was noteworthy. With a customer base of more than 2 million, Gupta claimed, "we will be able to operate at scale to drive business growth."
The four-year-old fintech's revenue stream and loan margins will improve thanks to the NBFC licencing. In addition, it will be able to provide direct client assistance rather than only acting as a loan-service provider (LSP).
Jupiter is anticipated to perform with larger ticket values of Rs 75,000 to Rs 1 lakh over longer loan terms of three to 24 months. On Jupiter's platform, the typical loan term is now around six months, and the average ticket amount is close to Rs 30,000. About 25,000 users have received credit from it. The company was recently valued at over $700 million and has so far raised over $160 million in equity capital.

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