While walking tightrope, a little support helps go a long way, but the success at the end of the rope hinges on the fine balance. That’s the way Jupiter founder and CEO Jitendra Gupta thinks.

The chief executive of neobanking startup Jupiter believes that a partnership with a traditional lender may help neobanks dodge some regulatory headwinds more easily, but the key to success remains in its ability to innovate solutions with undeterred focus on customer satisfaction.

Jupiter is the second in its league to reportedly acquire a stake in a traditional bank. Multiple media reports said that Jupiter’s deal to pick up a 26% stake in Mauritius-based SBM Bank is awaiting the approval from the Reserve Bank of India. Sources told Inc42 that the fintech company may look to further increase its stake in SBM Bank after the initial approval.

In 2023, Bengaluru-based fintech Slice became the first startup to acquire North-East Small Finance Bank.

Gupta, a serial entrepreneur, founded Jupiter in 2019 to offer a range of financial services such as debit cards, SIPs, mutual funds, personalised savings options, expense management, and UPI payments. Jupiter has raised nearly $170 Mn till date from investors like PeakXV Partners, QED Investors, and Matrix Partners and was valued at $710 Mn.

The fintech company managed to narrow its losses by 16% to INR 275.94 Cr in the year ended March 2024 (FY24) from INR 327.04 Cr in the previous fiscal on the back of strong revenue growth and wider margins. The startup’s operating revenue jumped 404% to INR 35.85 Cr during the period under review from INR 7.11 Cr in FY23.

In an exclusive interaction with Inc42 as part of the Griffin Dialogues series, Gupta shared that while fintechs will look to strengthen their partnerships with traditional banks in an increasingly strict regulatory environment, the new-age companies need to provide unique solutions to the existent problems to sustain and also attract VC funding.

As Jupiter scales in revenue, brings down losses, and strengthens its employee base, Gupta said, it is pertinent to strengthen the company’s board, celebrate diversity as the culture within the organisation, and ensure employee engagement.

Edited excerpts from the interaction:

Inc42: For fintechs, partnerships with traditional banks or acquiring stakes in them is now considered a crucial parameter to ensure long-term regulatory compliance and monetisation. How do you see this?

Jitendra Gupta: Partnerships with traditional banks or acquiring stakes in them can certainly give fintech companies an edge in regulatory compliance and open up........

© Inc42