Jitendra Gupta Targets Indian Banks with New Fintech Venture

The Frustrations with Traditional Banking in India

For many individuals in India, interactions with banks are often far from pleasant. South Asian banking institutions have gained a reputation for unsolicited spam calls, aggressively marketing loans and credit cards, even to customers who have previously declined such offers.

Furthermore, resolving even simple queries with a bank can be a remarkably lengthy process. Consider ICICI Bank, the nation’s third-largest financial institution, which served as my primary bank for over six years.

Currently, the bank is in its third month of attempting to determine the appropriate internal contact to reissue my credit card following an Amazon partnership issue. I have since moved forward, and it appears they have done the same, potentially before even addressing my initial request.

Startups Attempt to Remedy Banking Issues

Challenges for Small Businesses

Small and medium-sized enterprises also frequently encounter difficulties with traditional banks. Obtaining a corporate account for an early-stage startup can be unpredictable and challenging. This prompted companies like Razorpay and Open to develop solutions to improve this experience.

Consumer-Focused Fintech Solutions

In recent years, numerous startups have emerged with the goal of enhancing the banking experience for individual consumers. Whether you are a student, a recent graduate, a working professional, or lack a credit history, there are now firms offering access to credit cards and loans.

However, these services often have limitations, and customer loyalty remains a significant hurdle.

The Core Issue: Lack of Deposit Relationships

“A customer’s primary allegiance lies with the institution where they maintain their savings deposits,” explains Jitendra Gupta, a prominent fintech entrepreneur with a decade of experience in the industry. Because fintech startups typically don’t hold customer savings, “they have been unable to fundamentally disrupt the established banking system. This is a critical reality.”

Jupiter: A New Approach to Banking

Gupta's Vision

Gupta, previously co-founder of CitrusPay (acquired by Naspers’ PayU) and managing director of PayU, has been contemplating these challenges for over two years. He believes a different strategy is required.

“To truly transform the banking sector, one cannot operate peripherally. It’s essential to engage at the core – where deposits are held. This is a protracted process demanding substantial initial capital and expertise in navigating the banking landscape,” he stated in a TechCrunch interview.

Funding and Launch

After securing approximately $24 million in funding from investors including Sequoia Capital India, 3one4 Capital, Amrish Rau, Kunal Shah, Kunal Bahl, Tanglin Venture Partners, and Rainmatter, Gupta is prepared to launch his new venture.

Jupiter, his new startup, aims to introduce “delight” into the banking experience and is scheduled to launch in India on Thursday.

“Our vision is for a bank account to be intelligent, providing insights, personalized guidance, and fostering financial discipline,” he elaborated.

Features and Functionality

Jupiter will also offer loans and other financial products. However, instead of resorting to unsolicited calls, it will proactively identify customers facing financial shortfalls and offer credit lines directly through the app. “Upselling should be contextual and personalized, not intrusive.”

“Jupiter is built with a deep integration with the core banking infrastructure, ensuring a seamless experience for all banking needs,” noted Amrish Rau, CEO of Pine Labs and a long-time associate of Gupta.

Initial Product Offering

The startup, with a team of 115 employees, has developed several features for launch. These include buy now, pay later options on UPI (a market first), a mutual fund portfolio analyzer, a debit card, in-app customer support chat, expense categorization, card recommendations, and insurance coverage assessment.

Jupiter is also developing zero mark-up forex transactions and streamlined two-factor authentication. The startup maintains a public Trello board detailing its development roadmap and incorporating feedback from beta testers. “Transparency is key to building customer trust,” Gupta emphasized.

Building Trust and Gathering Momentum

Jupiter will have a dedicated customer relationship team. A waiting list launched late last month already garnered over 25,000 applications within two weeks.

Despite its disruptive ambitions, Jupiter currently relies on partnerships with established banks, specifically Federal Bank and Axis Bank.

Investor Expectations

Gupta shared his investors’ enthusiasm, stating, “There’s a widespread belief, mirroring the success of fintech giants like Nubank, that we will evolve into a full-fledged bank.”

However, Gupta is currently focused on establishing Jupiter’s independent identity. “I want customers to choose Jupiter for its own merits, not because of affiliations with Federal or Axis Bank.”

The startup aims to serve over 1 million customers within the next 12 months.