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Jitendra Gupta, CEO of fintech app Jupiter Money, dismissed allegations of layoffs made against the company as baseless and false.

In a response to questions sent by Yourstory, he said that the claims stem from unreliable gossip channels and are made by disgruntled former employees with personal grievances.

A post on the social media platform Grapevine had said that the Peak XV and Tiger Global-backed neobank allegedly laid off several top employees across various departments, including the Chief Product Officer, Directors of Products, multiple Product Managers, and several engineering and risk team members.

However, former Swiggy executive Anuj Rathi, who joined the company in September 2023 as the chief of product and marketing, is set to leave the company to pursue other opportunities, according to people in the know. Sources said that multiple product managers too have been on the lookout.

The post also alleged serious privacy lapses and leaks that led to some of the firings.

“Same is true for data privacy. 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,” Gupta said.

According to a social media post by an anonymous user, Jupiter Money’s monthly burn rate is alarmingly high.

Jupiter Money’s consolidated net loss more than doubled to Rs 327 crore in FY23 from Rs 156.3 crore in the FY22.

Operating under its parent company, Amica Financial Technologies Limited, Jupiter witnessed a significant increase in operating revenue, reaching Rs 7 crore compared to Rs 42 lakh reported the previous year, as per the company’s filings.

However, expenses surged by nearly 113% to Rs 383 crore, driven by a substantial rise in processing charges and expenses related to software and technology.

Out of the total expenses amounting to Rs 383 crore, Jupiter allocated the majority of funds towards employee benefits, totaling Rs 158 crore and representing a twofold increase from the previous year.

In January last year, Jupiter Money secured approximately $12.5 million in venture debt from Alteria Capital. Its last major funding round came in late 2021, where it raised $86 million in Series C funding led by QED Investors and Sequoia Growth Fund, with additional contributions from existing investors Tiger Global, Matrix Partners, 3one4 Capital, and BEENEXT.

Governance issues and regulatory crackdown have impacted the flow of capital into the Indian fintech sector, with investments dropping 57% year-on-year for Q1 2024.

According to Tracxn Geo Quarterly Report, the fintech segment raised total investments of $551 million in the first quarter of 2024—a drop of 57% compared with $1.3 billion raised in Q1 2023. However, the funding trended positive compared with Q4 2023, when fintech startups secured $346 million—a 59% increase quarter-on-quarter.