Jar’s $50 Mn Funding Deal Falls Through Over Valuation Mismatch

SUMMARY

While Jar sought a valuation of $300 Mn to $350 Mn, the potential backers pegged the company at $200 Mn to $250 Mn

Besides Prosus, TikTok-backer Susquehanna International Group (SIG) and existing investor Arkam Ventures were looking to participate in the round

Another bone of contention was the startup cofounders, Nishchay Ag and Misbah Ashraf, looking to sell some of their shares through secondary transactions

Fintech startup Jar’s $50 Mn (nearly INR 425 Cr) funding deal with a clutch of investors, led by Prosus, has reportedly collapsed over valuation differences.

Citing sources, Moneycontrol reported that the deal fell through after Jar sought a valuation of $300 Mn to $350 Mn (INR 2,500–2,900 Cr) while the potential backers pegged the company at $200 Mn to $250 Mn (INR 1,700–2,100 Cr). This led to a stalemate and the deal didn’t materialise.

Besides Prosus, TikTok-backer Susquehanna International Group (SIG) and existing investor Arkam Ventures were looking to participate in the round.

If the investors had prevailed, Jar would have had to contend with a down round as the Tiger Global-backed fintech platform last raised funds in 2022 at a valuation of $300 Mn.

As per the report, another bone of contention was the startup cofounders, Nishchay Ag and Misbah Ashraf, looking to sell some of their shares through secondary transactions. The incoming investors were opposed to this.

While Prosus declined to comment on the story, Jar didn’t respond to Inc42’s queries on the development till the time of publishing this story.

Founded in 2021 by Nischay and Ashraf, Jar allows users to invest as low as INR 1 in digital gold loans. It also entered the D2C jewellery space with the launch of its brand Nek last year.

The startup claims to have a user base of over 1.5 Cr and counts the likes of Eximius Ventures, Force Ventures, LetsVenture, Rocketship Venture Capital and WEH Ventures among its investors.

Jar’s IPO Plans

With the funding deal failing, Jar is preparing to kick off talks with bankers for an initial public offering (IPO) “sometime in 2026”, the report said.

On the financial front, the fintech platform seems to be nearing profitability. In a post on X in January, cofounder and CEO Nishchay said that Jar became profitable. However, he didn’t provide any numbers or time period.

In FY24, the startup reported a 15% decline in its loss to INR 103.97 C from INR 123 Cr in 2024. Revenue from operations stood at INR 49.03 Cr in FY24, up 461% from INR 8.73 Cr in the previous fiscal year.

Last year, Nischay claimed that Jar’s annualised revenue run rate (ARR) jumped to INR 270 Cr in December 2024 compared to INR 23 Cr in December 2023.