JAR became India’s go to savings app in just a year of operations.
Jar is a fintech app that helps users save money and invest in digital gold from just Rs.10.
Dear Enthusiasts,
This week on Soul Startup Newsletter, we have JAR, founded in 2021 by Misbah Ashraf and Nishchay Ag.
Welcome to Jar, where everyday spending becomes a journey to build wealth. Jar rounds up transactions to the nearest 10, saving the extra as digital gold. It's automatic or manual - your choice.
Your wealth grows, giving you the power to shape your financial destiny.
Jar's business model
Jar's business model allows users to save money in three ways:
1. Round-ups: Jar rounds off an individual's daily spending and sets aside the additional money as an investment.
2. Daily savings: Users can set up daily savings by clicking on the "Daily amount" card on the app home screen.
3. One-time investment: Users can make one-time investments.
Jar automatically invests the money in digital gold. Users can start their investments from ₹10.
Jar doesn't charge users any fees; it generates revenue through commissions from supply-side partners. Future services like insurance and credit will further add to revenue, but the platform remains free for users. Jar partners with Safegold for digital gold investments.
Jar is NPCI-approved and is supported by over 125 banks for UPI automatic payments. In 2023, Jar achieved a revenue run rate of $5.7 million.
Funding and Valuation
Jar, with over 11 million users and nearly 300,000 daily transactions, reached a remarkable 2023 revenue run rate of $5.7 million.
In its funding history, Jar has secured a total of $62.3 million across five rounds, commencing with its first round on April 8, 2021, and most recently, a Series B round on August 18, 2022, raising $22.6 million. The Series B round, led by Tiger Global Management, attracted participation from 26 investors.
Among its 70 institutional investors, Tiger Global Management stands as the largest. Additionally, Jar has garnered support from notable angel investors like Prashant Priya and 53 others.
Tiger Global leads fresh funding in fintech startup Jar, valuing it at $300 million.
Misbah Ashraf and Nishchay Ag, founders of Jar
Jar was co-founded to aid users in saving and investing, primarily by using gold, a familiar asset class for Indians.
Misbah Ashraf, a co-founder of Jar, hails from Bihar's Nalanda district, and he is not only involved with Jar but has also founded three other companies, serves as an angel investor in one, and sits on the board of three.
Nishchay AG, the CEO of Jar, is another co-founder and has additional involvement in one company as a founder, two as an angel investor, and one as a board member.
Conclusion
With around 50% of Jar's users in Tier 1 cities, 35% in Tier 2, and the rest scattered across India, the fintech is poised for diverse growth.
Beyond gold, the founders are committed to expanding into areas crucial for financial freedom like savings, debt management, and insurance.
The potential is enormous, given India's 900 million bank account holders, 650 million internet users, and 450 million UPI users.
Jar's approach of nudging users toward financial literacy is their bet for scalability, aligning with their mission to enhance financial well-being nationwide.
Share your favorite startups and groundbreaking ideas with us! Recommend hidden gems via our Google form. Your contribution could earn you a shoutout in our upcoming newsletter.
Stay tuned for exciting startups, subscribe, and see you next week!!