Jar's Golden Strategy: Profitable Fintech with 35M Users

Jar, an Indian fintech startup, has achieved profitability by enabling millions of first-time savers to invest in digital gold through its app. Unlike many consumer fintechs that target affluent urban users or credit products, Jar focuses on a culturally familiar asset—gold—as a low-barrier entry to saving. This approach has resonated with low- to middle-income users, often underserved by traditional financial institutions, allowing them to save for as little as ₹10 (about $0.11) per day.

Rapid Growth and User Base Expansion

Jar has amassed over 35 million registered users across 12,000 zip codes in India. About 60% of these users hail from tier-2 and tier-3 towns, and more than 95% are saving formally for the first time. The startup's financial performance has been stellar, with operating revenue from its core gold-saving app growing ninefold in fiscal year 2024 to ₹2.08 billion (approximately $23.6 million). Total revenue across all business lines surged to ₹24.50 billion (about $279.3 million), a 49-fold increase from the previous year.

Diversified Revenue Streams

This total revenue includes earnings from digital gold transactions, jewelry sales via its Nek platform, and fees from third-party distribution partnerships. Nek, launched last year, offers gold, silver, diamond, and lab-grown diamond jewelry across over 8,000 zip codes using a drop-shipment model with zero inventory. It achieved over ₹1 billion in annual revenue and continues to grow steadily.

Vertical Integration and Strategic Moves

Jar has vertically integrated its operations, moving from a distribution platform to building an in-house tech stack for purchasing, storing, and managing gold directly. This shift, with partners like BDO and Brinks, allows Jar to capture a larger share of the gold value chain and distribute through third-party platforms such as PhonePe. Additionally, Jar partnered with BharatPe and Unity Small Finance Bank to enable UPI-based digital payments within its app, opening new revenue streams and enhancing user engagement.

Innovation with UPI AutoPay

As an early adopter of UPI AutoPay, Jar leverages this feature for recurring payments, driving repeat transactions and supporting its daily savings model. The app caters to a diverse user base, including IT professionals, small business owners, and daily wage workers, with support for nine Indian languages and personalized experiences through gamification and data-driven nudges.

Funding and Future Plans

Backed by investors like Tiger Global, Tribe Capital, Arkam Ventures, and WEH Ventures, Jar has raised $63.3 million and was last valued at over $300 million. Sources indicate plans for an IPO next year, with investment bankers already engaged.