Neobanking in India kicked off as a revolution mobile-first, sleek, and promise-laden. Today, the sector boasts 371 million users and eye-popping projections, with market value expected to grow from $9 billion in 2024 to over $156 billion by 2032.

But beneath the buzz, the business model shows cracks. Top players like Jupiter, Open, and Fi Money are burning cash at staggering rates often recording revenue-to-loss gaps of 7 to 8 times. Customer acquisition costs (₹1,500–3,000) outweigh average annual earnings per user (₹500–1,200), making break-even a distant dream.

According to industry insiders, the reliance on partnerships with traditional banks leaves neobanks vulnerable without core banking control, their service innovation and revenue models remain constrained. Nevertheless, success stories are emerging: RazorpayX and Jupiter are carving niche in business payments and automated savings; Niyo serves blue-collar users and travelers with tailored foreign exchange products.