Indian fintech Jar turns profitable by enabling millions to save in gold

Core Insights - Jar, an Indian fintech startup, has achieved profitability by enabling millions of first-time savers to invest in digital gold [1][7] - The company targets low- to middle-income users, allowing savings in gold for as little as ₹10 (approximately $0.11) a day, which has attracted over 35 million registered users [2][3] - Jar's total revenue surged to ₹24.50 billion (around $279.3 million) in fiscal year 2024, a dramatic increase from ₹500 million ($5.7 million) in the previous year [5] User Demographics - Approximately 60% of Jar's users come from tier-2 and tier-3 towns in India, with over 95% saving formally for the first time [3] - The startup has registered users across 12,000 zip codes, indicating a broad reach in underserved markets [3] Financial Performance - Jar's operating revenue from its gold-saving app grew ninefold to ₹2.08 billion (roughly $23.6 million) in fiscal year 2024 [5] - The jewelry segment, launched through the Nek platform, generated over ₹1 billion (approximately $11 million) in annual revenue last year [7] Business Model and Strategy - Jar has transitioned from being a distribution platform to vertically integrating its operations, allowing it to manage gold directly [8] - The company has built an in-house tech stack for purchasing, storing, and managing gold, enhancing its control over the value chain [8] - Jar's growth strategy includes distributing gold through third-party platforms, such as PhonePe, a fintech firm owned by Walmart [8] Future Plans - Jar is reportedly planning to go public next year, with investment bankers already engaging with the startup for its IPO [4]