Wealthtech Startup Jar Releases FY24 Data, Losses Down to INR 104 Cr with a 15% Fall

Wealthtech startup Jar lowered its net loss by 15% to INR 103.97 crore in fiscal year 2023-24 (FY24) from INR 123 crore the previous year, owing to more sales and lower expenses.

Nischay AG and Misbah Ashraf founded Jar in January 2021, and it offers a smartphone app that allows users to spend as little as INR 1 in digital gold. It claims to have over 1.5 million users on its platform.

Revenue from operations increased by 461% to INR 49.03 crore in FY24, up from INR 8.73 crore in the previous fiscal year.

Including other income of INR 7.37 Cr, total revenue increased 277% to INR 56.41 Cr during the fiscal year under review from INR 14.93 Cr the year before. This comprises, among other things, interest income from banking deposits and capital gains from investment sales.

Related: VC Firm Prosus Plans To Lead $50 Mn Funding Round In Fintech Startup Jar

It was recently reported that global investment firm Prosus is in talks to lead a $50 million (INR 4242 crore) fundraising round for fintech company Jar.

The business entered the ecommerce industry in October with its direct-to-consumer jewelry brand, Nek.

Jar previously raised $22.6 million in a Series B fundraising round from Tiger Global and Eximius Ventures, among others, for a post-money valuation of $300 million. According to sources, the company has raised more than $111.67 million in total capital to far.

It also teamed with PhonePe in September to provide a new ‘Daily Savings’ feature to encourage the purchase of digital gold.

Jar, a digital gold-saving investment platform, generates the majority of its revenue through service sales, which also include commission income.

During the fiscal year under review, revenue from the sale of traded goods totalled INR 27.24 crore.

Jar additionally earned INR 49.03 crore in commission fees from the sale of services in FY24, 461% more than INR 8.73 crore the previous year.

Jar’s overall expenses for the fiscal year ending March 31, 2024 increased by 16.2% to INR 160.3 crore from INR 137.5 crore in FY23.

The company spent INR 68.70 crore on employee benefits, which is 66.7% more than the INR 41.19 crore paid last year.

The company managed to lower its Advertising And Marketing Cost & spending under this bucket by 57.10%, to INR 29.27 Cr in FY24 from INR 68.24 Cr the previous year.

The wealthtech startup spent INR 14.14 Cr in Web Hosting and Domain Charges category during the fiscal year under review, which is 49.15% more than INR 9.48 Cr in FY23.