Jupiter, a neobanking startup has recently received approval from the Reserve Bank of India (RBI) for a prepaid payments instrument (PPI) license. This milestone enables the fintech firm to introduce digital wallets to its users, facilitating UPI payments, fund transfers, and bill payments.
Backed by prominent investors such as Tiger Global and Peak XV Partners, Jupiter’s founder, Jitendra Gupta, expressed enthusiasm about the RBI’s decision, stating that the company plans to roll out prepaid account facilities in the near future. Gupta emphasized the extensive functionalities of PPI, likening it to a bank account, thus broadening Jupiter’s user base and enhancing its ecosystem.
With the PPI license secured, Jupiter aims to diversify its app offerings by introducing new use cases. Currently providing digital savings accounts, UPI payments, and financial management tools, the startup intends to leverage its expanded capabilities to cater to various financial needs of its users.
The regulatory approval also grants Jupiter’s customers the flexibility to operate risk-free accounts, utilizing the app for UPI transactions and similar activities. This move aligns with the company’s commitment to providing convenient and secure financial services to its user base.
Having raised a total of $165 million through multiple equity funding rounds, Jupiter has been steadily expanding its market presence. As of June 2023, the startup boasted a valuation of $654 million, according to data from Tracxn.
Jupiter’s entry into the PPI ecosystem further solidifies its position in the fintech landscape, joining fellow Bengaluru-based peer Slice, which obtained a similar license last September. Gupta’s successful acquisition of the PPI license marks another significant achievement for him, following Amica Financial Technologies’ receipt of a non-banking finance company (NBFC) license from the RBI last year.
This strategic move underscores Jupiter’s commitment to offering comprehensive financial solutions and underscores Gupta’s entrepreneurial vision in driving innovation within the fintech sector.