Jar Raises Rs 29 Crore From Existing Backer Unitary Fund as Valuation Climbs 23%

Manavi Gupta

| September 18 | Business Stories, Funding Feed

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Digital gold savings platform Jar has raised Rs 29 crore in fresh funding from existing investor Unitary Fund, giving the Bengaluru-based startup additional capital even as its larger fundraising discussions have failed to materialise.

The latest round also marks a 23% increase in Jar’s valuation from its previous funding round. Unlike a larger external round that the company had been exploring, the new capital has come entirely from an existing backer.

Unitary Fund Invests Rs 29 Crore

Jar’s board has approved the allotment of 1,70,589 Series B2 compulsorily convertible preference shares (CCPS) at an issue price of Rs 1,700 per share. Unitary Fund subscribed to the entire issue, investing Rs 29 crore in the company.

The startup plans to use the proceeds for working capital requirements and general corporate purposes.

The funding comes after Jar had been in discussions with several investors for a much larger round. The company was reportedly looking to raise $100 million, with WestBridge Capital among the investors involved in discussions. Those talks, along with discussions with other potential investors, have since appeared to have stalled.

Despite the difficulty in closing a larger round, sources cited in the fundraising discussions said Jar has been operating profitably for the past year.

Valuation Rises To Around Rs 3,155 Crore

The latest share allotment values Jar at a post-money valuation of around Rs 3,155 crore. That is 23% higher than the approximately Rs 2,565 crore valuation recorded in its previous round.

The increase comes at a time when digital gold savings platforms are facing a more cautious investment environment, particularly amid regulatory questions surrounding the sector.

Jar and other digital gold savings platforms do not fall under the regulatory ambit of the Securities and Exchange Board of India (SEBI). However, Bengaluru Police registered an FIR against Jar over allegations related to the unauthorised collection of money from users against digital gold without the required regulatory approvals.

The Karnataka High Court declined to quash the FIR, allowing the investigation to continue.

Regulatory concerns have also affected investor sentiment towards the broader digital gold savings space. Sources said fintech companies have become more cautious about the segment. Larger platforms such as Google Pay, PhonePe and Paytm have also reduced the extent to which they promote digital gold compared with their earlier approach.

Jar Expands Beyond Digital Gold

Jar began with a focus on automated savings and digital gold investments, allowing users to put aside small amounts and invest in gold through its platform.

The company has since expanded into other financial and consumer categories. Its offerings include jewellery through its Nek vertical as well as insurance products.

Its direct-to-consumer jewellery business has also been scaling rapidly, according to sources familiar with the company’s operations.

The latest funding therefore gives Jar additional working capital as it continues to operate across these businesses while navigating a more challenging fundraising environment.

Tiger Global, Unitary Fund Among Key Investors

Following the latest allotment, Tiger Global holds a 9.60% stake in Jar, while Unitary Fund’s ownership stands at 9.50%.

WEH Ventures and Motherson Lease Solution hold 2.52% and 0.89%, respectively.

Among the founders, Nishchay Ag owns 25.23%, Misbah Ashraf holds 16.64% and Captain Prashant Priya has a 7.40% stake.

Jar has raised more than $60 million to date from its investors.

Revenue Reaches Rs 208 Crore in FY25

Jar reported operating revenue of Rs 208 crore in FY25, while its gross revenue stood at around Rs 2,450 crore.

The company also narrowed its losses during the year and said it had turned profitable in the second half of FY25.

The Rs 29 crore investment from Unitary Fund is considerably smaller than the $100 million round Jar had been exploring. Still, the fresh capital comes with a higher valuation and gives the startup additional funds for working capital and corporate requirements as it continues to build beyond its original digital gold savings proposition.

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