Jar, which helps consumers save small amounts to invest in digital gold, has held talks with investors to raise around $50 million in this round. The startup was last valued at $300 million when it raised $22.6 million from Tiger Global in 2022.
“The due diligence is underway and Prosus, through its venture arm, is likely to lead the new funding round,” a person aware of the matter said, adding that the final contours of the deal may still evolve as other investors may also join the round.
An email sent to Prosus didn’t elicit any response while Jar founder Nishchay AG declined to comment. Jar has so far raised more than $61 million since inception in 2021.
The latest deals from Prosus are of significance following the Byju’s debacle in India. In June, Prosus and Naspers CEO Fabricio Bloisi told ET in an interview that he would continue to back early-to-late stage companies in India despite the $500 million write-off incurred due to the collapse of its once high-flying portfolio firm, Byju’s. In an earnings call earlier this month, Bloisi reiterated his outlook for India — on new investments as well as potential IPOs in the next 12-18 months. Besides Byju’s, PharmEasy has also been a drag on its books.
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Meesho, Elastic Run and Eruditus are among its other large bets in India. It also runs PayU in India.While late-stage deals have made a comeback in 2024 for established startups, Prosus’ potential investment in Jar would be among sizable new rounds from a new investor in a growth-stage company. According to data from Tracxn, fintechs saw $778 million in funding in the third quarter of calendar year 2024 – a 66% jump from a year ago.
While Jar’s core product remains gold-based savings, it has ventured into ecommerce with its direct-to-consumer brand Nek. Essentially, consumers can buy jewellery from the firm itself.
“Not only gold, they (Jar) are also selling lab grown diamonds. There is a strong affinity to buy jewellery as an investment and that’s why Jar launched its own brand. Its gross sale run-rate hit Rs 100 crore in October,” a person aware of the matter said.
It has also started lending through partners and would be scaling this offering next year, once the new funding round closes. Sources, aware of its financials, said the company focused on reducing its monthly spends during 2024 and is working on turning cash-positive while growing revenue about four-five times a year — albeit on a small scale.
Around 60% of its customers are middle class from small cities and towns. The company has users spread across 11,000 pin codes in the country. Arkam Ventures, Panthera Capital, Prophetic Ventures and Yes VC are among its investors.
