Neobank Jupiter Boosts Employee Engagement with $4.9 Million Equity Share Allotment

Neobanking innovator Jupiter has recently made headlines with its substantial expansion of its employee stock option plan (ESOP). In a strategic move aimed at bolstering employee engagement and ownership, Jupiter has allotted 21,655 equity shares to its workforce, valued at INR 40.78 Cr (approximately $4.9 Mn). This generous allotment underscores Jupiter’s commitment to fostering a sense of ownership among its employees.

According to Jupiter’s filing with the Registrar of Companies (RoC), the newly issued shares have been allocated to the Jupiter Employee Welfare Trust, with the trust’s trustee being Jupiter’s founder and CEO, Jitendra Gupta. Each equity share is valued at INR 18,826.29, comprising a nominal value of INR 10 and a premium value of INR 18,816.29. This significant valuation reflects Jupiter's aim to reward and retain top talent through substantial equity stakes.

Jupiter’s move aligns with a broader trend in the startup ecosystem. Notably, major players like Zomato, Delhivery, and Honasa have also made substantial ESOP allotments within the first week of August. This surge in ESOP activity highlights a growing trend among startups such as Paytm, Adda247, Yubi, Nykaa, and TBO Tek, which have similarly enhanced their employee stock options in recent months.

The recent uptick in ESOP allotments comes at a crucial time. Indian startups have faced significant challenges due to mass layoffs in the past, which have tarnished their employer profiles. According to Inc42’s Indian Startup Founder Survey 2023, approximately 43% of over 400 surveyed founders noted that layoffs have dampened enthusiasm among potential hires to join startups. As a result, 55% of founders are leveraging the appeal of ESOPs to attract and retain talent.

For Jupiter, this latest ESOP expansion follows its initial rollout of a $4 Mn ESOP plan over two years ago. Founder Jitendra Gupta has emphasized that the company’s ESOPs are designed to instill a "true feeling of ownership" among employees, which he believes is key to fostering long-term wealth and commitment.

About Jupiter

Founded in 2019 by Jitendra Gupta, Jupiter has quickly established itself as a leading neobank. The company offers a comprehensive range of financial services, including debit cards, systematic investment plans (SIPs), mutual funds, personalized savings options, expense management tools, and UPI payments. Recently, Jupiter further strengthened its financial position by raising INR 20 Cr (approximately $2.4 Mn) for its non-banking financial company (NBFC) arm, Amica Finance. This funding round saw participation from prominent investors such as Peak XV Partners, Matrix Partners India, BEE Accelerate Fund, QED Fund, Global Founders Capital, and Tiger Global.