Fintech startup Jar’s valuation surges by $100 m in latest fundraise | The Financial Express

Fintech startup Jar’s valuation surges by $100 m in latest fundraise

Tiger Global leads $23-million round

Fintech startup Jar’s valuation surges by $100 m in latest fundraise
The startup plans to utilise the current round of funding to expand its workforce and continue to build a comprehensive, one-stop savings financial platform.

Fintech startup Jar, which offers gold-backed micro-savings, has raised $22.6 million in a Series B funding round at over $300-million valuation, making it one of the few fintech companies to raise a multi-million dollar round during a funding slowdown. The startup was valued at $200 million in its previous funding round in February.

The latest round was led by Tiger Global while other returning investors included Arkam Ventures, Eximius Ventures, Force Ventures, LetsVenture, Rocketship Venture Capital and WEH Ventures. New investors in the Series B round include 1Finance, Capier Investments, Cloud Capital, Folius Ventures, Panthera Capital, Prophetic Ventures, Yes VC, Adam Nash and Zachary Hargreaves.

The startup plans to utilise the current round of funding to expand its workforce and continue to build a comprehensive, one-stop savings financial platform.

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Jar had earlier raised $32 million in a Series A funding round led by New York-based investment firm Tiger Global at a $200-million valuation in February 2022.

Startup funding in the Indian ecosystem had plunged in the second quarter of CY2022 due to a major ‘funding winter’ for late-stage rounds amid a decline in investor confidence. However, despite the slowdown in late-stage deals, early-stage deals across seed to Series A rounds have seen an uptick in terms of volume, though the number of the deals has declined year-on-year in both Q1 and Q2 of 2022, FE reported on Wednesday.

Founded in May 2021 by Misbah Ashraf and Nishchay AG a year ago, Jar claims to have onboarded more than over 9 million users to date. The startup said in a statement it is currently working to expand its roster of savings and investment offerings. A spokeswoman for Jar told FE that the app will diversify into other financial services such as credit and insurance in the future.

“Everyone believes in gold. Even the most advanced investor hedges the risk by investing some of his portfolio in it. The long term vision is to enable all our users to diversify into multiple asset classes and also avail of seamless access to a wide range of financial services like credit and insurance via Jar,” the spokeswoman added in response to FE’s queries.

Jar launched its first gold-backed savings product in June 2021. The platform currently clocks an average of 220,000 transactions a day. The startup added that it is witnessing consistent growth in users’ savings with a 20% month-on-month increase in average savings amount. “A typical middle class Indian saves about $1,000 a year and we intend to capture over 50% of that via Jar,” the spokeswoman added.

Studies have shown that most Indians begin earning in their early ’20s but do not consider long-term financial planning until around a decade later in part because they are intimidated by the complexity of traditional investment options.

“Because our users deeply align with every aspect of our platform based on existing behavior patterns, we have been privileged to witness early and agile adoption. We are seeing a 20% average growth in users’ savings from month to month and are excited to see them evolving into committed and confident investors. We will continue to expand our service offerings to suit them and help them achieve their goal of financial independence,” Nishchay AG, CEO, and co-founder of Jar, said.

Alex Cook, partner at Tiger Global, said of the funding: “By starting with digital gold, a well-understood and well-loved asset class in India, Jar’s savings app has quickly gained trust and traction with young earners interested in developing a saving and investment strategy. We are impressed with the company’s rapid growth and are excited to double down as they expand into new asset classes.”

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