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Amica Financial Technologies, the parent company of Peak XV-backed fintech Jupiter, reported a narrowed net loss for the fiscal year ending March 2024, as revenue growth and expense reduction helped offset a decrease in other income—its primary revenue source.

The fintech company posted a total loss of Rs 275.94 crore, down 15.6% from Rs 327.04 crore in FY23.

Revenue from operations surged nearly five-fold, reaching Rs 35.85 crore, compared to Rs 7.11 crore in the previous fiscal year. However, other income, largely derived from interest on bank deposits, fell by 8.6% to Rs 44.66 crore from Rs 48.86 crore a year earlier.

Amica cut total expenses by 7%, down to Rs 356.22 crore from Rs 382.95 crore. However, employee benefit expenses rose 22.9% to Rs 19.46 crore, suggesting continued investment in talent.

Marketing and advertising expenses saw a significant reduction, declining from Rs 74.5 crore in FY23 to Rs 3.80 crore in FY24, indicating a shift towards a more cost-efficient customer acquisition approach.

Amica’s cash position saw notable improvement. Cash and cash equivalents reached Rs 152.78 crore, up from Rs 79.88 crore, aided by net cash inflows from investing activities and proceeds from new debt issuance.

In June, the neo-banking startup received final approval from the Reserve Bank of India (RBI) to start issuing prepaid payment instruments (PPIs). These instruments enable users to conduct UPI payments and transfer up to Rs 2 lakh into their account.

They can be issued as smart cards, magnetic stripe cards, internet accounts, internet wallets, mobile accounts, mobile wallets, paper vouchers, and any other instrument that can be used to access the prepaid amount.

Neobank Jupiter is reportedly in discussions to acquire a 5% to 9.9% stake in SBM Bank India, with plans to potentially increase its holding, pending regulatory approval as per TechCrunch.

This move aligns with a trend of Indian fintechs forming strategic partnerships with traditional lenders to expand their reach. Recently, payments and lending startup slice completed its merger with North East Small Finance Bank (NESFB), creating a unified banking entity.