Indian micro gold savings app raises US$32mil led by Tiger

An India-based investment startup that encourages millennials to invest into digital gold has raised another RM133.7mil in Series A funding. — REUTERS/File Photo

Jar, a startup that helps Indians save small amounts to invest in tiny quantities of digital gold, has raised US$32mil (RM133.7mil) in Series A funding led by Tiger Global Management.

The app, which was launched last summer, also raised funds from existing investors including Arkam Ventures and new backers like Rocketship.vc, fintech Klarna AB founder Victor Jacobsson, Byron Ling of Canaan Partners and luxury retailer Italic’s founder Jeremy Cai, it said in a statement late Thursday.

The startup will deploy the capital to diversify its products and add lending and insurance offerings.

Fewer than 30 million people in a country with a population of over 1.3 billion invest in any form of assets, even though a billion people have bank accounts.

Jar, officially ChangeJar Technologies Pvt., aims to erase the pressure and challenges of investing among average citizens by helping them get started with micro amounts in gold, an asset that’s relatable and captivating to Indians.

"We are solving for habit and behaviour among young Indians,” said Nishchay AG, 37, co-founder and chief executive officer of Jar. "We want millennials to look at investing as insurance for their future, and not treat it as an expense.”

Jar has rapidly gained traction since its June launch and currently has four million users, almost nine-tenths of them aged between 21 and 35 years. As many as 99% of users are first-time investors, and the app sees over 150,000 daily transactions, Nishchay said.

The Bangalore-headquartered startup’s app gives users an option to save as little as a few rupees each time they transact on payment apps like Paytm and Walmart Inc.-owned PhonePe, which is then invested real time in digital gold.

Users can choose from different savings options such as roundups – save to the nearest round number after a transaction – set up recurring savings amounts daily or make a one-time saving. The app is currently available in four languages.

"Jar is in a promising position to establish and lead the category of digital savings,” Rahul Chandra, managing director of Arkam Ventures, said in the statement. – Bloomberg