Flipkart’s Super.money quietly partners with troubled Juspay as it expands its reach

Super.money, a financial services platform launched by Flipkart last year, has announced a strategic partnership with Juspay, a payments infrastructure firm, as it aims to enhance its direct-to-consumer (D2C) checkout services. The collaboration comes at a pivotal moment for Juspay, which has been working to recover from setbacks faced earlier this year due to issues with major payment companies that hampered its fundraising efforts. Recently, Super.money introduced its D2C checkout product, dubbed Super.money Breeze. This new offering promises merchants a streamlined one-click checkout experience, significantly speeding up online purchases by eliminating the need for one-time passwords and repetitive logins. Although the company has not officially named its technology collaborators, sources reveal that Juspay is providing the essential payments infrastructure for this latest service. This partnership is expected to expand Super.money's reach beyond Flipkart’s existing customer base and increase its visibility among D2C brands, helping it establish a more independent identity within the competitive e-commerce landscape. For Juspay, this collaboration represents a crucial opportunity to regain traction with Indian merchants after losing several clients to competitors like Razorpay and Cashfree Payments, which have encouraged merchants to utilize their proprietary payment processing systems instead. Despite the challenges, Juspay is still regarded as a trusted backend partner for many payment aggregators, having previously helped reduce transaction failures with its robust payment routing platform. The company has also secured a longstanding relationship with Amazon and obtained a payment aggregator license from the Reserve Bank of India last year. However, as competition in India’s digital payments sector heats up, many companies are choosing to limit their dependence on external providers to strengthen their direct relationships with merchants. This makes Super.money's decision to work with Juspay somewhat atypical in the current market landscape. Nevertheless, for a burgeoning fintech like Super.money, partnering with an established player like Juspay allows for quicker D2C integrations without the need to develop a full-stack payment system from the ground up. Launched in June 2024, Super.money has rapidly ascended to become one of India’s top five UPI apps by transaction volume. This government-backed instant payment system has enabled the app to handle over 200 million transactions monthly for four consecutive months, surpassing established private banks and other fintech competitors. Moreover, Super.money has emerged as a significant issuer of secured credit cards in India, boasting a 10% market share. These credit cards require customers to deposit funds and are issued in partnership with Utkarsh Small Finance Bank. The company is actively pursuing growth opportunities and is in discussions with a private sector lender to enhance distribution. With around 300,000 secured cards issued so far and an addition of 50,000 new cards each month, the secured card business is integral to Super.money’s strategy to transition users from low-margin UPI transactions to more lucrative financial products. While the platform does not charge for UPI transactions, it leverages this volume to onboard users and promote higher-margin offerings like credit cards and personal loans. Super.money has been able to maintain a lower burn rate by utilizing Flipkart’s distribution network instead of relying heavily on marketing. With a lean team of approximately 130 to 150 employees supporting over 80 million users, the company is strategically positioned for growth. Flipkart's support is evident, having invested $50 million into Super.money as it seeks to establish a stronger foothold in the fintech sector after spinning off PhonePe in 2023. As PhonePe continues to thrive independently, Super.money is focused on monetizing financial services both within and beyond Flipkart's e-commerce ecosystem. Looking ahead, Super.money plans to pursue external funding to achieve a valuation of around $1 billion by next year. With expectations to triple its annual recurring revenue to approximately $30 million by the end of 2025, the firm is banking on the success of its secured credit card business and personal lending, alongside its new D2C checkout product. However, the company will face intensified competition from established players like PhonePe, Google Pay, and Razorpay, all of whom are also building their payment infrastructures. The ability of Super.money to transform its UPI volume into sustainable revenue will be critical in determining its success in Flipkart's fintech portfolio, particularly in light of the pressures currently facing its partner, Juspay.