Indian neobank Jupiter is reportedly in advanced talks to acquire a significant stake in SBM India, according to multiple sources familiar with the matter, marking another example of a fintech startup partnering with traditional banking institutions.
The Bengaluru-based startup is reportedly considering acquiring a minority stake of between 5% and 9.9% in SBM India, the local subsidiary of SBM Bank, according to unnamed sources who are privy to the ongoing discussions.
A definitive agreement is pending closure, with a potential requirement for endorsement by the Reserve Bank of India, according to insiders.
In line with a prevailing trend amongst Indian fintech startups and venture capital firms, several entities are actively seeking to establish connections with lenders operating in the South Asian market. In a significant move last year, Indian fintech firm Slice announced a transformation that will empower the company to “reach a broader audience, including those often overlooked.”
Lightspeed and Sorin have recently invested in Shivalik Small Finance Bank, following investments from Accel and Quona in the lender. TechCrunch previously reported that Lightspeed was in talks to invest in the institution.
Several investors, including Premji Invest, Multiples, Zerodha, Gaja Capital, and MobiKwik, were reportedly considering investments in Nainital Bank, a subsidiary of Bank of Baroda, according to TechCrunch’s report from earlier this year?
Jupiter and SBM India did not immediately respond to a request for comment.
Jupiter, a self-proclaimed neobank, has partnered with the Federal Financial Institution to deliver cutting-edge financial services to its Indian customers. Despite this, India’s adoption of neobanks has trailed behind other major markets, including Brazil, where they have gained popularity at a faster pace.
