Indian Fintech Jar Achieves Profitability by Empowering Millions to Save in Gold

Indian Fintech Jar Turns Profitable by Empowering Millions to Save in Gold

Bengaluru-based fintech startup Jar has reached profitability by offering millions of Indians a culturally familiar and accessible way to save money: digital gold. Founded four years ago, Jar enables users—primarily from low- and middle-income segments—to invest in gold with daily contributions as low as ₹10 (approximately $0.11).

Unlike many consumer fintechs that target affluent urban populations or credit services, Jar focuses on financial inclusion by catering to underserved tier-2 and tier-3 cities. According to co-founder and CEO Nishchay AG, the platform has amassed over 35 million registered users across 12,000 zip codes, with roughly 60% hailing from smaller towns. More than 95% of these users are engaging in formal savings for the first time.

Robust Revenue Growth and Profitability

Jar’s latest financial filings reveal substantial growth. Operating revenue from its core gold savings app surged ninefold in fiscal year 2024 (ending March) to ₹2.08 billion ($23.6 million). More notably, total revenue across all business verticals soared 49 times to ₹24.5 billion ($279.3 million), up from ₹500 million ($5.7 million) the previous year.

This total revenue includes earnings from digital gold transactions, the jewelry sales platform Nek, and fees from third-party partnerships. Launched in early 2024, Nek offers gold, silver, diamond, and lab-grown diamond jewelry via a drop-shipment model with zero inventory, covering more than 8,000 zip codes. The jewelry arm crossed ₹1 billion ($11 million) in annual revenue last year and continues to grow steadily.

Vertical Integration and Expanded Services

Until recently, Jar operated mainly as a distribution platform for a third-party digital gold provider. However, since last year, the company has vertically integrated its operations, developing an in-house technology stack to directly purchase, store, and manage gold. This integration, supported by BDO as statutory auditor and Brinks as custodian, allows Jar to capture a greater share of the value chain and distribute gold through other platforms, including Walmart-owned PhonePe.

Further broadening its offerings, Jar partnered with BharatPe and Unity Small Finance Bank to enable digital payments via India’s Unified Payments Interface (UPI). This allows users to make instant payments to individuals and merchants directly within the Jar app, diversifying revenue streams and enhancing user engagement. Jar was also an early adopter of UPI AutoPay, facilitating recurring payments and driving consistent daily savings—a key feature for its users.

Inclusive User Experience and Diverse User Base

Jar’s app supports nine Indian languages and incorporates gamification and behavioral nudges to encourage regular gold savings. Its user base spans skilled professionals in IT and manufacturing, small business owners, and daily wage workers such as electricians and construction laborers.

“Daily savings is our hero feature,” Nishchay noted, emphasizing the importance of UPI AutoPay in maintaining regular user transactions. The company uses data-driven cohort analysis to tailor experiences based on factors such as device type, location, language, and saving patterns.

Funding and IPO Plans

Jar has raised $63.3 million to date, backed by investors including Tiger Global, Tribe Capital, Arkam Ventures, and WEH Ventures. Valued at over $300 million, the startup has been profitable after tax for two consecutive quarters. Sources familiar with the company indicate that Jar is engaging with investment bankers to prepare for a potential initial public offering in 2026.