Jupiter remains a company ahead of revenue in FY21; Spending quadruples to Rs 26 Cr

The neo banking platform Jupiter had raised a $ 45 million round jointly led by Nubank, Global Founders Club, Sequoia Capital and Matrix Partners. With the Series B round, the company’s valuation doubled to $ 300 million.

While the company raised a total of $ 71 million, it took Jupiter nearly two years to go live with the platform. This means that Jupiter stayed in the pre-revenue phase in FY21.

For the record, Jupiter generated operating income of Rs 18,000 in FY21 that assumed zero income in FY20. Operating income aside, the company generated Rs 11.85 billion in other income for the fiscal year versus Rs 7 lakhs in the previous fiscal year.

Jupiter

Similar to well-capitalized early stage startups, the other income is mostly interest on time deposits and mutual fund investment gains, which were Rs 4.02 billion and 7.82 billion, respectively, in FY21.

The two-year-old company spent a lot in the last financial year to set up operations and build products. As a result, Jupiter’s total spending increased 310% to Rs 26 crore in FY21 from Rs 6.34 crore in the previous fiscal year (FY20).

Personnel expenses have emerged as the largest cost center for the Bengaluru-based company. About 69% of total expenditure was used for employee benefits. Importantly, 30% of these costs ~ Rs.5.44 billion were booked as expenses for ESOPs (a non-cash component).

Marketing and advertising expenses increased 174% to Rs. 1.37 billion in FY21 from Rs. 0.5 billion in FY20, while legal and legal expenses increased 450% to Rs. In FY21. 1.43 crore in FY21 from Rs 0.26 crore in the previous fiscal year.

Jupiter

With Jupiter not yet in operating profit, the company’s cash outflow increased 244% to Rs.20 billion in FY21 from Rs.5.82 billion in FY20.

Jupiter currently only offers access to invitations. This makes it unlikely that there will also be significant operating income in the current financial year (FY22). The company will prioritize growth with an emphasis on onboarding and keeping accounts. His rival Fi, who recently cleaned up $ 50 million Round, led by B Capital, had zero Sales in FY21 with a loss of over Rs 50 crore.

In addition to savings accounts and digital banking experience, Jupiter offers Buy debit cards now pay later function (Bullet) and content platform Millions and mutual fund portfolio tracker: Portfolio Analyzer.

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