As a result, the Neo-banking startup Jupiter has shown stellar financial growth in FY 2024 with sevenfold growth in its operating revenue. The company, promoted by Peak XV Partners, said it clocked an operating revenue of ₹51.2 crore in the year FY23, about a seven-fold growth from ₹7.1 crore in the previous fiscal. Yet, the firm’s losses declined by more than 23% in this fiscal compared to the last year. Clearly, this has been a bridging year for the banking platform.
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Jupiter works through its parent company, Amica Financial Technologies, and its NBFC arm, Amica Finance. The startup has been concentrating on innovative digital-banking services for individuals and small businesses. Through technology, it aims to provide inexpensive, seamless banking services. Concentrating on this niche has helped Jupiter establish a foothold in this competitive landscape dotted with traditional banks and the newer fintech startups vying for position.
Its NBFC business has also done well. In FY24, the company’s NBFC segment reported revenue of ₹15.4 crore principally from interest income and processing fees on loans. This business, in standalone terms, has posted a profit of ₹1.27 crore in the past fiscal year and possibly holds promise within the larger construct of Jupiter’s operations.
Even with such significant revenue growth, the biggest cost category for Jupiter was employee benefits, which consumes more than 50% of the total expenses and stands at ₹195.1 crore. This figure includes ₹41 crore that accounts for employee stock ownership plans, or ESOPs. Otherwise, such fundamental costs as software and technology investment, legal fees, and advertising summed up to ₹330.1 crore in FY24, putting an end to lavish expenditure.
Company’s financials also show that though the company took giant strides, it has several challenges to overcome. In this regard, losses have squeezed 23.1% and stand at ₹233.63 crore for the year. That works out to a return on capital employed of -34.40% and an EBITDA margin of -202.4%. On a unit basis, Jupiter spent ₹6.45 to generate every rupee of operating revenue. Thus, there is much left to be done by way of cost management.
Jupiter’s last valuation was pegged at approximately $710 million in December 2021 in the $86 million Series C funding round. Thus far, the company has raised more than $160 million from investors such as QED Investors, Peak XV, and Matrix Partners. Such financing has helped in scaling up operations and technological capabilities.
Further, Jupiter has every prospect of sustaining the growth curve since it is optimally placed to cash in on growing demand for digital banking solutions. The shift in financial services online has only accelerated since the pandemic, and this trend throws open doors for such entities as neobanks.
In conclusion, Jupiter’s revenue had been going up and lost less in FY24, which implied future profitability and market leadership. As the organization innovated and added more offerings, it would continue to attract users looking for efficient, technology-driven banking solutions. The next years will be critical to the successful navigation of challenges as Jupiter scales up operations while keeping sustainability in relation to growth and profitability at its core.
