Tiger Global-backed fintech startup Jar, best known for its digital gold savings offering, has crossed Rs 100 crore in annualised recurring revenue (ARR) from its jewellery e-commerce vertical Nek, just nine months after its launch in February, co-founder and CEO Nishchay AG said.
The company, which recently partnered with PhonePe to promote its core digital gold savings feature, is also exploring further partnerships with other UPI platforms and e-commerce companies. “We are in discussions with leading UPI-players and e-commerce platforms to create similar commission-based partnerships, which will help us scale faster while keeping our acquisition costs low,” Nishchay said.
For FY24, Jar reported Rs 49 crore in operational revenue, up from Rs 8.7 crore in FY23, driven by its core savings platform and early traction from Nek. The company expects revenue to grow five-to-sixfold in FY25 as it continues to scale its jewellery and lending offerings. While its core platform generates revenue from wholesale-retail arbitrage in digital gold, Nek has opened new opportunities through cross-selling jewellery to existing users, without additional expenditure on marketing, according to Nishchay. Lending is another source. Jar has partnered with five NBFCs to provide credit, with plans to add more partners, where commissions range from 1.5% to 4.5% depending on the loan profile.
Nek, which allows users to convert their digital gold savings into jewellery, is driving the bulk of growth, according to Nishchay. “India’s jewellery market is growing rapidly and could reach $250-300 billion by 2030. Our aim is to capture 4-5% of that market in the next five years,” he said.
Despite reducing its burn rate by 15% to Rs 103.97 crore in FY24 from Rs 123 crore in FY23, Jar is prioritising growth over profitability for now.
The company’s entry into e-commerce comes at a time when jewellery buying is shifting online at the expense of traditional retail. E-commerce platforms like Amazon reported a fivefold increase in online gold and diamond jewellery sales during the festive season, driven by demand from tier 2 and 3 cities. The momentum isn’t limited to e-commerce. Quick commerce platforms like Zepto also reported a sixfold increase in gold coin sales and a fourfold jump in silver coin sales during the same period. Nek is seeking to capitalise on this trend, by focusing on tier 2+ cities, which form a majority of its core digital savings user base.
Jar has raised $61.6 million in funding so far, with its latest Series B round of $22.6 million in 2022, valuing it at $306 million. The founders hold a 41.2% stake, followed by ESOP pool (14.2%), angel investors (10.5%), Tiger Global (9.4%), and Arkam Ventures (7.8%), with others holding the remaining 15%, according to Tracxn.
