Jar Gold Savings Platform Secures Rs 29 Crore Investment
Jar, a prominent gold savings platform, has been navigating challenges in securing new funding despite engaging with multiple investors, including WestBridge. Recently, the Bengaluru-based firm has obtained a crucial injection of Rs 29 crore from existing investor Unitary Fund. Notably, this funding arrives with a 23% increase in Jar’s valuation compared to its previous funding round.
Details of the Funding Round
According to the company’s regulatory documents, Jar’s board has sanctioned the issuance of 1,70,589 Series B2 compulsorily convertible preference shares (CCPS) at an issue price of Rs 1,700 each. Unitary Fund has completely funded this Rs 29 crore round. The newly acquired funds will be utilised to fulfil working capital needs and for various corporate purposes, as indicated in the filing.
Funding Challenges and Future Plans
This new capital comes as Jar has been in negotiations to raise $100 million from investors, including WestBridge Capital. It appears that discussions with WestBridge and other potential investors have not progressed as anticipated.
Additionally, this funding arrives in a climate of increased regulatory scrutiny for the digital gold savings sector. While Jar and similar platforms do not fall under SEBI’s regulatory oversight, Bengaluru Police have filed an FIR against the company, alleging the unauthorised collection of funds from users for digital gold without the necessary regulatory approvals. The Karnataka High Court has permitted the investigation to proceed and declined to dismiss the FIR.
Sources suggest that these regulatory issues have made investors more cautious about supporting digital gold savings platforms. Following the FIR against Jar, significant fintech players like GPay, PhonePe, and Paytm have also reduced their promotion of digital gold services.
Valuation and Business Operations
Startup Superb’s estimates indicate that Jar’s post-money valuation is approximately Rs 3,155 crore in this round, marking a 23% increase from its previous valuation of Rs 2,565 crore.
Jar operates a savings and investment platform enabling users to automate their savings and invest in digital gold. The company has further diversified into jewellery through its Nek vertical and has ventured into insurance offerings. It has been reported that its D2C jewellery brand is experiencing rapid growth.
Stake Distribution and Financial Performance
After the latest share allotment, Tiger Global holds a 9.60% stake in Jar while Unitary Fund possesses 9.50%. WEH Ventures and Motherson Lease Solution own stakes of 2.52% and 0.89%, respectively. Co-founders Arkalagud Gowrishankar Nishchay Babu, Misbah Ashraf, and Captain Prashant Priya hold shares of 25.23%, 16.64%, and 7.40%, respectively.
Jar has successfully raised over $60 million from its various investors. In FY25, the startup reported an operating revenue of Rs 208 crore, while its gross revenue was approximately Rs 2,450 crore. Jar has also managed to narrow its losses and has claimed to have achieved profitability during the latter half of FY25.