Bengaluru-based digital gold savings platform Jar has raised Rs 29 crore in fresh funding from existing investor Unitary Fund, according to regulatory filings reviewed by Entrackr. The latest capital comes through a Series B2 round and values the company about 23% higher than its previous funding round.
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, making it the sole investor in this round. The company plans to use the proceeds to meet working capital requirements and general corporate purposes.
Valuation rises to around Rs 3,155 crore
According to Entrackr’s estimates, the latest share allotment puts Jar’s post-money valuation at around Rs 3,155 crore, up from approximately Rs 2,565 crore in its previous round. The increase comes despite the relatively small size of the latest fundraise compared with the larger round the company had been exploring.
Jar had reportedly been in discussions with several investors, including WestBridge Capital, to raise around $100 million. However, those discussions appear to have stalled, according to sources cited by Entrackr. Sources also said the company has been operating profitably for the past year.
Jar continues to expand beyond digital gold
Founded as a savings and investment platform, Jar enables users to automate their savings and invest in digital gold. The company has subsequently expanded into other categories, including jewellery through its Nek vertical and insurance offerings. Sources cited by Entrackr said its direct-to-consumer jewellery business has been scaling rapidly.
Jar’s current digital-gold offering allows users to start saving with amounts as low as Rs 10, with the company saying that the gold is stored in insured vaults and audited independently.
Funding comes amid regulatory scrutiny
The latest investment comes at a time when the digital-gold savings segment is facing regulatory and investor scrutiny. Entrackr reported that Jar and other digital-gold savings platforms are outside the regulatory ambit of SEBI, while Bengaluru Police has registered an FIR against Jar over allegations concerning the unauthorised collection of money from users for digital gold without the required regulatory approvals.
The Karnataka High Court declined to quash the FIR, allowing the investigation to continue. These developments have contributed to greater caution among investors considering digital-gold businesses, according to sources cited by Entrackr.
Tiger Global remains a major shareholder
Following the latest allotment, Tiger Global holds a 9.60% stake in Jar, while Unitary Fund’s holding stands at 9.50%. WEH Ventures and Motherson Lease Solution hold 2.52% and 0.89%, respectively.
Among the founders, Arkalagud Gowrishankar Nishchay Babu holds 25.23%, Misbah Ashraf holds 16.64%, and Captain Prashant Priya holds 7.40%. Jar has raised more than $60 million from investors to date.
Revenue reaches Rs 208 crore in FY25
Jar reported Rs 208 crore in operating revenue in FY25, while its gross revenue stood at around Rs 2,450 crore, according to the Entrackr report. The company also narrowed its losses during the financial year and said it had turned profitable in the second half of FY25.
The Rs 29 crore investment from Unitary Fund provides Jar with additional capital for working capital and corporate requirements as it continues to operate across digital gold, jewellery and insurance. While the funding is significantly smaller than the reported $100 million round the company had been exploring, the latest transaction also marks a higher valuation for the Bengaluru-based startup.
