A less than a year old unique investment platform Jar has raised $4.5 million in its latest financing event. The startup got immense popularity within few months due to its unique ways of investments. A user can invest even Rs 1 via the Jar platform.
Jar Closes $4.5 Million Funding Round
Millions of individuals in India indeed have bank accounts, just a small part of this population puts resources into any financial investment services.
As per the latest reports, Less than 30 million individuals put their resources into stocks. As of late, a small bunch of new startups has made it simpler for clients to contribute, however, the figure has generally stayed low.
Presently, a newly launched startup Jar believes that it has discovered the answer for tackle this issue — and is now seeing an acceptable surge in the new investors on its platform.
On Wednesday, Jar confirmed that it has received $4.5 million from various local and global investors, including Arkam Ventures, Tribe Capital, WEH Ventures, and angels including Kunal Shah (founder of CRED), Shaan Puri (formerly with Twitch), Ali Moiz (founder of Stonks), Howard Lindzon (founder of Social Leverage), Vivekananda Hallekere (co-founder of Bounce), Alvin Tse (of Xiaomi) and Kunal Khattar (managing partner at AdvantEdge).
Jar is an investment platform for low-income Indians. It allows its users to spend even Rs 1 as an initial investment. The concept is similar to Acorn and Stash’s play in the U.S. market is getting exponential growth in the Indian startup ecosystem. The six-month-old Jar app has already attracted about half a million downloads, as per the startup’s claim.
Talking about Jar’s idea and how both co-founders thought to initiate this low investment-oriented startup, Nishchay said, “We both understand what a typical middle-class family goes through. Someone who comes from this background never had any means in the past but their aspirations are never-ending. So when you start earning, you immediately start to spend it all.”
He further added that the business industry should bring middle-class-friendly products that will help them get started. As per Tribe Capital’s estimates, Over 400 million Indians are about to embrace digital financial services for the first time in their lives. The jar has built an app that is poised to help them.
How Does Jar Work?
Jar was founded by Nishchay AG, former director of mobility startup Bounce, and Misbah Ashraf, co-founder of Marsplay (sold to Foxy), at the beginning of 2021.
Jar has launched its online platform six months back. It allows users to start investing from just 1 Indian rupee.
Clients on Jar platform can put their investment into various schemes and begin in no time. The app works with Paytm (PhonePe support is in progress) to set up their investment frequency. Users can also set up any sum between 1 Indian rupee to 500 for daily investment.
Jar platform can likewise gather clients’ instant messages and save a minuscule sum dependent on each financial exchange they do. Thus, for example, if a client has done a transaction of Rs 51, Jar converts it to the closest 10th figure (60, for this situation) and saves nine rupees as an investment. Clients can likewise physically open the app and spend any sum they wish to invest.
Whenever clients have set aside some cash in the Jar app, the platform then, at that point puts that into digital gold. Jar has chosen digital gold as the major area of investment since individuals in the South Asian market as of now have big confidence in it. India has a special interest in gold. From rustic ranchers to metropolitan regular workers, almost everybody stashes the yellow metal and displays gems at weddings.
Jar claims that transactions and AUM on its platform are showing a growth of 350% every month. Due to the popularity and the huge userbase, the startup plans to widen its product offerings in the coming days.
