Jar, a three-month-old Bangalore-based saving and investing application, allows users to save money and invest in digital gold.
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Jar funding news
Jar, a three-month-old saving and investing app located in Bangalore, secured $4.5 million in a Pre-Series A financing led by Tribe Capital, Arkam Ventures, and WEH Ventures on Wednesday.
Kunal Shah (Founder, CRED), Shaan Puri (Senior Director of Product, Mobile Gaming & Emerging Markets at Twitch), Manik Gupta (ex-CPO, Uber and Co-founder of San-Francisco-based CVKey), and Ali Moiz were among the angel investors that participated in the round (Founder at US-based Streamlabs, Peanut Labs Media and Stonks Inc).
The company was created in May 2021 by Nishchay AG, a former director and founding member of mobility startup Bounce, and Misbah Ashraf, the creator of community-focused retail platform Marsplay (bought by Foxy in 2020).
In just three months, the app claims to have grown by 350 percent month over month, reaching 0.5 million users.
The Android application allows customers to save money in three different ways before investing it in digital gold.
Users can commit to investing any amount starting at Rs 1 by setting up a regular payment. Second, consumers can make a one-time gold investment using the site.
Third, customers may take advantage of Jar’s functionality, which allows them to save tiny amounts of money each time they complete a transaction. For example, if a user spends Rs 17 on a transaction (which the Jar app may detect by looking at SMSs), the software rounds up the amount to the nearest tenth — in this case, Rs 20 — and invests the difference (Rs 3).
The startup’s 10-person team has teamed with SafeGold, a digital gold marketplace, and gets a commission on transactions.
“Jar was created to assist people in developing a saving habit. There are approximately 900 million Indians with bank accounts, but only roughly 30 million of them invest in any way. We’re utilizing gold because it’s a reliable asset,” said Nishchay, who met his co-founder at Bounce.
The company was collaborating with Misbah’s company Marsplay when the two came up with the concept of creating a new company focused on saving and investing for Generation Z.
“Jar’s goal aligns with our theory on how outstanding product innovation can meet millennials’ financial well-being needs. Jar’s ability to drive user behaviour at scale in the extremely appealing sector of economic planning and investment has impressed us,” said Rahul Chandra, MD of Arkam Ventures.
In the Indian market, a flurry of savings, investing, trading, and financial planning applications aimed at the younger generation has emerged. Walnut, Saveabhi, and Splitwise are digital applications aimed at saving money, whereas Fundsindia, Kuvera, Invezta, Zerodha, and Groww are digital apps aimed at capital management.
“Most of India’s initial 1.0 products were clones of their western equivalents and hence couldn’t grow. Jar is a product built from the bottom up for India, and it embodies the Indian saving mentality. Users are thrilled to open the app several times a week since it is frictionless to use, which is something we don’t see too frequently in fintech products,” said Rohit Krishna, General Partner at WEH Ventures.
In the near future, the firm intends to expand its products beyond gold. The cash will be used to expand the company’s staff and develop new products.
Ali Moiz, an angel investor based in the United States, gambled on the founders’ “strong founding team and hustling attitude.”
“Jar has put together a fantastic team with a strong background and a can-do attitude. “The app has shown early momentum, is intuitive and is based on a concept that has previously proved effective in the United States,” he added.