Bank Partnerships Add Value, But Can’t Sustain Fintech Startups

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 monetisation opportunities. However, it is essential for fintechs to stay true to their core mission and values. While strategic partnerships can bring value, the focus should remain on building independent, customer-first platforms that are future-proof.

True innovation comes from thinking beyond traditional boundaries – whether through partnerships or by forging an independent path. In the long run, the key isn’t just who fintechs partner with, but the value they create for users and how effectively they scale while maintaining that value.

Inc42: How do you think fintechs can ensure there is no impact on innovation despite the regulatory hurdles?

Jitendra Gupta: Regulatory hurdles are natural in any growing industry, but they shouldn’t stifle innovation. In fact, regulation can help build trust and create a more secure environment for users. The key is to integrate compliance early into the innovation process, ensuring that new products and features are developed with regulatory standards in mind from the start.

Inc42: How does Jupiter navigate the regulatory hurdles and target profitability? 

Jitendra Gupta: Our vision at Jupiter is simple: Redefine how people interact with their money, making financial services seamless, intuitive, and human. We’re doubling down on creating experiences that genuinely add value, whether through smarter savings, simplified investments, or partnerships that expand possibilities for our users.

As I said, regulatory scrutiny is a natural in any maturing industry, and I believe it pushes us to build stronger, more resilient businesses. For fintechs, the focus must shift towards balancing innovation with responsibility. Profitability, in this context, is not just about numbers, it’s about building long-term trust and delivering services that users are happy to pay for. For us, it’s about being strategic with growth while ensuring we never lose sight of our customers’ needs.

Inc42: Jupiter has successfully secured funding, despite the uncertainty in the fintech ecosystem. What’s your message to young fintech founders on fund-raising?

Jitendra Gupta: The key to successful fundraising isn’t just about the money. It is about building a compelling vision and a product that delivers real value to customers. At Jupiter, this has been at the heart of our conversations with the investors.

For young fintech founders, my advice is simple: stay focused on solving meaningful problems and don’t be swayed by short-term market trends. Investors want to back teams that have a deep understanding of the problem they’re solving and the ability to execute consistently. Keep your eye on the long-term vision, adapt when necessary, but always stay true to your purpose.

Inc42:  How do you see the larger VC sentiment towards the fintech ecosystem in India?

Jitendra Gupta: It is certainly more promising than ever. 

Customers in India are adopting fintech products at an unprecedented pace. I believe the long-term outlook for Indian fintechs is incredibly strong. India’s financial ecosystem remains underpenetrated and fintechs have a significant role to play in bridging that gap. VCs are becoming more discerning, looking beyond the growth-at-all-costs mentality and focusing on sustainable business models, strong unit economics, and clear paths to profitability.

The market will always reward businesses that create real value, not just in terms of revenue, but in trust, user experience, and long-term impact.

Inc42: Did you see any shift in investor expectations after the RBI crackdown on fintechs? 

Jitendra Gupta: Yes, there has definitely been a shift in investor expectations. Investors are now placing greater emphasis on businesses that demonstrate strong compliance frameworks and the ability to adapt to evolving regulations. 

Inc42: How does Jupiter align its long-term business goals with investor expectations?

Jitendra Gupta: The key to aligning with investor expectations in today’s environment is to stay focused on user experience, compliance, and profitability.

The focus is no longer just on rapid growth, but also on building sustainable businesses without compromising user trust or operational integrity. At Jupiter, we have always prioritised building a business that balances innovation with responsibility. We understand that the path to long-term success lies in creating a compliant, transparent, and customer-centric platform.

Inc42: How have you strengthened your board to ensure compliance in corporate governance?

Jitendra Gupta: At Jupiter, corporate governance is at the core of everything we do. We believe that strong governance practices are essential for building a sustainable business that earns the trust of users, investors, and stakeholders. Our board plays a crucial role in shaping the company’s strategic direction, ensuring accountability to our mission while adhering to regulatory requirements.

We have assembled a board with leaders from diverse backgrounds, bringing deep expertise in fintech, technology, and regulatory compliance. This ensures that our decisions are well-informed and aligned with our long-term goals.

We also foster a culture of integrity and transparency within the company. Regular audits, adherence to best practices in financial reporting, and a commitment to ethical decision-making are key pillars of our governance framework.

Inc42: As a leader, how difficult is it to scale the team, yet remain cost-effective and create value for employees?

Jitendra Gupta: Scaling a team while staying cost-effective and creating value for employees is all about measuring the ROI (return on investment) on every decision. Ensuring the right prioritisation allows for objective, unbiased decision-making.

Creating value for employees means fostering a culture of continuous learning and maintaining strong feedback channels to keep the team motivated and engaged. Scaling isn’t just about adding numbers, it’s about building a resilient, high-impact team that aligns with the company’s long-term goals.

Inc42: What does it take to structure a team effectively, scale operations, and create long-term value for employees? As a leader, how have you evolved to manage a rapidly growing organisation?

Jitendra Gupta: Structuring a team effectively starts with ensuring that every individual is aligned with the company’s mission and values. It’s about fostering a culture where each person feels a sense of ownership and accountability, and where cross-functional collaboration is seamless. I believe in empowering teams with autonomy while providing the right resources and support to help them succeed.

Scaling operations requires a clear focus on building systems and processes that can grow with the company, without losing the agility that makes a company successful. It’s also about ensuring that as the team expands, the core culture and values remain intact.

Personally, I’ve evolved by becoming more hands-on with the team dynamics, actively listening to challenges and ideas, and focusing on creating a transparent, feedback-driven culture. As organisations grow, leadership must adapt, not just to scale operations, but also to nurture a strong sense of purpose and connection within the team.

Inc42: Tell us how you approach personal wealth management. What guiding principles influence your financial decisions beyond Jupiter?

Jitendra Gupta: Personal wealth management is about balancing growth while maintaining a fair approach to risk. For long-term wealth creation, a consistent and patient investment strategy is the key.

One of the guiding principles that influence my decisions is staying aligned with my long-term goals, giving back to the community to create a broader impact, and taking calculated risks. I also believe in the importance of liquidity and flexibility, so I keep a portion of my wealth in accessible, less volatile assets to ensure I can act quickly when opportunities arise. Additionally,I prioritise continuous learning and improving my financial acumen to make better, more informed decision.

(Edited By Kumar Chatterjee)