Jupiter Money CEODenies AllegationsAmid Reports of Departures and Losses

Jitendra Gupta, CEO of fintech app Jupiter Money, has dismissed allegations of layoffs, high burn rate, and financial losses as baseless and false. Gupta attributed the claims to unreliable gossip channels and disgruntled former employees with personal grievances.

Why this matters: The financial health and governance of fintech companies like Jupiter Money have a direct impact on the trust and confidence of their customers, as well as the overall stability of the financial system. As the fintech industry continues to grow, the ability of companies like Jupiter Money to navigate challenges and maintain transparency will be crucial in shaping the sector's future.

A social media post alleged that Jupiter Money laid off several top employees, including the Chief Product Officer, Directors of Products, multiple Product Managers, and engineering and risk team members. However, Gupta denied these allegations, stating that the company follows high standards of data privacy and governance and has not found any such claims to be true in audit reports.

Despite Gupta's denial, reports suggest that former Swiggy executive Anuj Rathi, who joined Jupiter Money in September 2023 as the chief of product and marketing, is set to leave the company to pursue other opportunities. Sources also indicate that multiple product managers have been looking for newnotices.

Jupiter Money's financial performance has also come under scrutiny. The company's consolidated net loss more than doubled to Rs 327 crore in FY23 from Rs 156.3 crore in FY22. While operating revenue increased to Rs 7 crore, expenses surged by nearly 113% to Rs 383 crore, driven by a rise in processing charges and software and technology data privacy issues. Employee benefits accounted for Rs 158 crore, a twofold increase from the previous year.

Despite the financial challenges, Jupiter Money has managed to secure funding in recent years. The company secured $12.5 million in venture debt from Alteria Capital in January 2023 and raised $86 million in Series C funding in late 2021.

Gupta remains confident in Jupiter Money's data privacy and governance standards. "We follow very high standard of data privacy and governance and regularly go through audits by banks and regulatory agencies. No such claims were found to be true as per those audit reports," he stated.

As the parent company Jupiter Wagons prepares for an analyst/investor meet on May 8, 2024, and a board meeting to discuss various matters under SEBI regulations, the focus remains on Jupiter Money's ability to navigate the challenges and allegations surrounding its operations and financial health. The coming months will be crucial in determining the company's trajectory and its CEO's ability to steer it through turbulenttimes.

Key Takeaways

• Jupiter Money CEO denies allegations of layoffs and financial losses.
• Company's net loss doubled to Rs 327 crore in FY23, despite increased revenue.
• Expenses surged 113% due to processing charges and tech expenses.
• Jupiter Money secured $12.5M venture debt and $86M Series C funding.
• CEO confident in company's data privacy and governance standards.