Mumbai-based financial technology startup Jupiter has raised a $86 million funding round led by Tiger Global, QED and Sequoia Capital India.

MUFG Bank Ltd., the largest bank in Japan, participated in the Series C round as well, along with existing Jupiter backers. The investment more than doubles the startup’s valuation to $711 million.  

Jupiter’s latest funding round, which was reported by TechCrunch on Monday, comes only a few months after the startup launched its namesake banking app into general availability. In that time frame, the startup is said to have built up an installed base of nearly a half-million users. Moreover, Jupiter says, it’s onboarding 5,000 additional users every day.

Jupiter was founded in 2019 by Chief Executive Officer Jitendra Gupta, a fintech entrepreneur whose previous company was acquired for $130 million three years earlier. Jupiter doesn’t operate any retail branches and provides its services exclusively via an app.

Jupiter’s app provides a growing range of financial services for consumers. Users can create savings accounts, order a Jupiter-branded debit card and use a buy now, pay later feature to make purchases. According to TechCrunch, Jupiter has plans to introduce a lending service following the new $86 million funding round, along with investment products.

To date, Jupiter has raised more than $150 million in outside funding. The startup reportedly still has its previous funding round in the bank along with about half of a $25 million Series A investment it secured earlier.

Investment activity in the fintech sector reached a new record this year. According to research from market intelligence platform CB Insights, fintech companies raised more than $90 billion in funding between January and October, about double the total amount the industry had raised in 2020.

Consumer-focused financial services startups fared especially well in 2021. In October, N26 GmbH raised $900 million from Third Point Ventures and Coatue to grow its digital banking platform. Buy now, pay later giant Klarna Bank AB earlier secured a $639 million funding round that valued it at a hefty $45.6 billion.

The rapid growth of the consumer fintech ecosystem has also caught the attention of more established players in the financial services sector. Goldman Sachs Group Inc. recently announced a $2.24 billion deal to acquire GreenSky Inc., a fintech firm that competes in the buy now, pay later segment, to boost its digital banking portfolio. 

Image: Jupiter