Neobanking unicorn Jupiter Money witnessed its consolidated net loss soaring to INR 327 crore in the financial year 2022-23 (FY23), more than doubling from INR 156.3 crore in the previous fiscal. This surge in losses was attributed to a substantial rise in employee benefit expenses.
Despite reporting an impressive over 1,500% growth in operating revenue to INR 7.1 crore in FY23 from INR 42 lakh in FY22, Jupiter faced challenges due to heightened employee costs. Founded in 2019 by Jitendra Gupta, Jupiter offers a suite of financial services, including debit cards, SIPs, mutual funds, personalized savings options, expense management, and UPI payments.
In FY23, the revenue from services reached INR 5.3 crore, with additional operating revenue, including collaboration and subscription fees, standing at INR 1.8 crore. Jupiter’s total revenue, including interest income and other non-operating income, reached INR 56 crore in FY23, a significant rise from INR 22.1 crore in the previous fiscal.
The neobank faced increased total expenses of INR 382.9 crore in FY23, witnessing a surge of 114.6%. Employee benefit expenses, notably, were the primary contributor to this surge, rising nearly 150% to INR 158.5 crore. On a unit economics basis, Jupiter spent INR 54 to earn every rupee from operations in FY23.
Their impressive growth in operating revenue, the substantial rise in employee benefit expenses seems to have impacted their overall financial performance. It’s always a challenge for startups to manage their expenses effectively while scaling their operations. Hopefully, they’ll be able to address these challenges and find a path to profitability in the future. Sending my best wishes to the jupiter team!~ Dr Shishir Gupta founder & CEO of StartupLanes
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