Tiger Global-Backed Jar Spent INR 16 To Earn INR 1 In FY23

SUMMARY

The investment tech startup’s net loss stood at INR 122.8 Cr against operating revenues of INR 8.7 Cr during the fiscal under review

Jar’s total expenses almost doubled to INR 137.5 Cr in FY23 from INR 70.3 Cr in FY22

In FY23, Jar bagged $22.6 Mn in its Series B funding round at a post-money valuation of $300 Mn from the likes of Tiger Global, LetsVenture, et al

Investment tech startup Jar’s net loss widened almost 77% year-on-year (YoY) to INR 122.8 Cr in the financial year 2022-23 (FY23) despite a sharp jump in revenues.

Operating revenue jumped 1,079.7% to INR 8.7 Cr during the period under review from INR 73.8 Lakh in FY22.

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

Meanwhile, Jar’s total revenue surged 1,887% year-on-year (YoY) to INR 14.7 Cr in FY23.

Founded in January 2021 by Nischay AG and Misbah Ashraf, Jar operates a mobile-based app, which allows users to make investments as low as INR 1. Currently, it claims to have more than 1.5 Cr users on the platform.

During the fiscal under review, Jar bagged $22.6 Mn in its Series B funding round at a post-money valuation of $300 Mn from Tiger Global, Eximius Ventures, Arkam Ventures, Force Ventures, and LetsVenture, et al.

How Did Jar Spend?

Jar’s total expenses almost doubled to INR 137.5 Cr in FY23 from INR 70.3 Cr in the previous year with advertising and marketing expenses being the single biggest contributor.

The startup spent INR 68.2 Cr towards advertising and marketing during FY23, up more than 1.4X YoY. The rise in ad expense was due to multiple quirky commercials released during the year, featuring Indian actors like Prakash Raj, Nawazuddin Siddiqui, and Divyenndu Sharma.

On the other hand, Jar spent INR 41 Cr towards employee benefits, which tripled from INR 13.3 Cr spent in the bucket in FY22. Of this, Jar spent INR 1.5 Cr in managerial remuneration, which, quite interestingly, dropped 78% YoY.

Jar spent a total of INR 23.3 Cr in salaries, wages, bonus, and other allowances in FY23 against INR 12.8 Cr spent in FY22. The startup’s ESOP expenses also stood at INR 16 Cr in FY23.

Meanwhile, depreciation and amortisation expense jumped more than 6X YoY to INR 85.8 Lakh in FY23. In the investment tech market, Jar competes with giants like Zerodha, Groww, Paytm Money, Upstox, and ET Money.

As per an Inc42 analysis, India’s fintech ecosystem is projected to have a $2.1 Tn market opportunity by 2030, growing a CAGR of 18% between 2022 and 2030. Of this projected market opportunity, the investment tech market alone is expected to reach $74 Bn in market size by 2030.