Jar Cuts FY24 Loss To INR 104 Cr

Wealthtech startup Jar narrowed its net loss 15% to INR 103.97 Cr in the fiscal year 2023-24 (FY24) from INR 123 Cr in the previous year on the back of higher revenue and reduced expenses. 

Revenue from operations skyrocketed 461% to INR 49.03 Cr in FY24 from INR 8.73 Cr in the last fiscal (FY23).

Including other income of INR 7.37 Cr, total revenue surged 277% to INR 56.41 Cr during the year under review from INR 14.93 Cr a year ago. This includes interest income on banked deposits, gain on sale of investments, among others. 

Founded in January 2021 by Nischay AG and Misbah Ashraf, Jar operates a mobile-based app, which allows users to invest as little as INR 1 in digital gold. It claims to have more than 1.5 Cr users on the platform.

It was reported recently that the global investment giant Prosus is in discussions to lead a $50 Mn (INR 4242 Cr) funding round in fintech startup Jar.

In October, the company forayed into the ecommerce space with its D2C jewellery brand Nek.

Jar last raised $22.6 Mn in its Series B funding round at a post-money valuation of $300 Mn from Tiger Global, and Eximius Ventures, among others. The company has raised more than $111.67 Mn in total funding till date, as per Inc42 data. 

It has also partnered PhonePe in September to roll out a new ‘Daily Savings’ feature to spur the purchase of digital gold. 

Breakdown of Revenue

As a digital gold-saving investment platform, Jar earns a majority of its revenue from the sale of services, which also includes commission income.

Revenue from sale of traded goods stood at INR 27.24 Cr during the year under review.

Jar also earned INR 49.03 Cr in commission fee from sale of services in FY24, 461% higher than INR 8.73 Cr in the previous year.

Where did Jar spend? 

In line with the surge in sales, Jar’s total expenses for the fiscal year ended March 31 2024 increased by 16.2% to INR 160.3 Cr against INR 137.5 Cr in FY23. 

Employee Benefits Expense: The company spent INR 68.70 Cr towards employee benefits, 66.7% higher than INR 41.19 Cr it spent last fiscal. 

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

Web Hosting And Domain Charges: The wealthtech startup spent INR 14.14 Cr in this bracket during the year under review, 49.15 % higher than INR 9.48 Cr in FY23.  

Note: We at Inc42 take our ethics very seriously. More information about it can be found here.