Neobank Amica Technologies, which is managed by Jitendra Gupta, the former PayU India’s chief executive, has acquired $2 million in capital through an investment round led by two major VC firms, including UK-based Hummingbird Ventures and US-headquartered Bedrock Capital.
Gupta said his company is planning to use the funds raised to launch digital banking operations for Jupiter in July 2020. The company has about 50 employees on its payroll. They’re currently working at the firm’s business offices in Bengaluru and Mumbai.
Amica had previously secured $24 million in funding (in November of last year), which was notably one of the largest ever seed funding rounds for an Indian company. Sequoia Capital, 3one4 Capital, Matrix Partners and Beenext had contributed to the round.
Anupam Mittal, CEO at People Group, Nitin Kamath, co-founder and CEO at Zerodha, Sandeep Tandon, founder at FreeCharge, and Smile Group co-founder Manish Vij had also made strategic investments in Amica’s seed round.
In 2016, Gupta and his business partners Amrish Rau and Satyen Kothari had sold Citrus Pay to PayU for around $130 million. Following the acquisition, Gupta joined the executive team at PayU, in order to assist the firm with establishing its credit business, called LazyPay.
Gupta pointed out that the traditional banking sector is going through massive changes. He added that the challenging times we’re facing, due to the Coronavirus outbreak, have made it obvious that digital banking will lead the way forward for consumers and businesses.
Following its latest investment round, Amica’s valuation has increased by 43% to $100 million. The Fintech firm was previously valued at around $70 million (back in November 2019).
Amica’s digital banking platform, Jupiter, will offer a savings account, various investment options, and lending services to salaried workers in India. The company said its services are mainly intended for millennials who make more than INR 50,000 (appr. $655) per month.