Nubank co-leads investment in Indian neobank

India's neobank, Jupiter raised $45 million in a Series B funding round as the startup prepares for its public launch next month.

The round was co-led by Brazil-based Nubank, Sequoia Capital, Global founders, and Matrix Partners India. Other participants include existing investors, Addition ventures, 3one4 Capital, Beenext, Tanglin VC, Greyhound; as well as new investor Mirae Assets Venture.

The startup which previously raised $70 million, is now worth more than $300 million to date. 

"Nubank and Jupiter share the mission of making banking the best experi nice possible for our customers, putting an end to all the bureaucracy and the pain in the current system," said David Vélez, founder and chief executive of Nubank, in a statement. "The Indian and Brazilian markets have many similarities and through this investment, we aim to support Jupiter in their growth path. We see a lot of potential and are excited about joining them so early on their journey."

The Brazilian giant, Nubank, also raised $750 million in June this year. It now has a valuation of $30 billion.

Jupiter is targeted at consumers in India. Since its launch in June, Jupiter has attempted to ease banking burdens and make it more delightful for customers, according to TechCrunch. The platform offers customers a variety of services including savings account and money management. The platform which claims to be a "100% digital bank", also offers buy now and pay later services on UPI, a standard created by a coalition of banks in Indian which has now become a popular way Indians transact online.

"We believe that a bank account should be a smart account, where it gives you insight, shares personalized tips guides you through attaining some financial discipline," Jitendra Gupta, industry veteran and co-founder of CitrusPay (now PayU).

In a discussion on Thursday, Gupta said the startup currently has only 120 people on its on-board team, but is processing a 100,000 on-board list of people who have signed up to its waiting list. He said that Jupiter will launch to the public next month. He further stated that there is an ongoing competition to influence the banking industry in India. 

"If you want to change the banking industry, you cannot operate from the side. You have to fight from the center, where they deposit their money. It's a very time-consuming process and requires a lot of initial capital and experience with banks," Gupta said.

The continuous-developing digital era is birthing scores of startups in India and all over the world. Many financial technology startups attempt to improve banking experience for customers through several ways including loans and credit cards regardless of your credit score or financial capacity. However, these startups or platforms still have limitations when it comes to full digital banking experience, this is the gap Jupiter hopes to fill, according to the company.

According to people familiar with the matter, many investors have been in recent talks with Gupta to invest in the round. However, the veteran said he is not looking to raise too much capital for his new startup.

Jupiter was created based on suggestions from a community of neobanking fans who mentioned features they would want in a banking app.

"Neobank such as Jupiter are exactly what India needs: someone who can deliver simple, extensive and high-quality digital banking in a cost-efficient way," Ashish Dave, chief executive of Mirae Asset Venture Investments' India business. "Think a customer experience so good that it feels like making privileged banking available to folks who dread branch visits and long waiting times."

He also said that the purpose of banking is to meet customers where they are and meet their needs in the most "intuitive manner possible." Dave added that Gupta and his tech team have solved the problem, despite the existing banking stack.

Jupiter is one of several fintech startups in India, including EpiFi, Niyo, Open, and Razorpay, that have recently ventured into the neobanking sector. In June, Open was reportedly in talks to close $100 - $120 million funding round co-led by Visa and Google.