In a move to diversify its product mix, Tiger Global-backed wealthtech startup Jar is reportedly entering the e-commerce space with its D2C jewellery brand, Nek.
The͏͏ co-founder͏͏ and͏͏ CEO͏͏ of͏͏ Nishchay͏͏ AG,͏͏ a͏͏ gold-focused͏͏ micro-savings͏͏ platform,͏͏ shared͏͏ with͏͏ Livemint͏͏ that͏͏ the͏͏ company͏͏ ventured͏͏ into͏͏ the͏͏ sector͏͏ in͏͏ February͏͏ and͏͏ is͏͏ poised͏͏ to͏͏ surpass͏͏ INR͏͏ 100͏͏ crore͏͏ in͏͏ annual͏͏ recurring͏͏ revenue͏͏ (ARR)͏͏ by͏͏ October.
Aligning͏͏ Strategies:͏͏ Nek as͏͏ a͏͏ Logical͏͏ Extension͏͏ of͏͏ Digital͏͏ Gold͏͏ Savings
According͏͏ to͏͏ the͏͏ report,͏͏ Nischay͏͏ noted͏͏ that͏͏ this͏͏ initiative͏͏ aligns͏͏ with͏͏ Jar’s͏͏ strategy͏͏ to͏͏ diversify͏͏ its͏͏ revenue͏͏ streams͏͏ and͏͏ mitigate͏͏ losses.͏͏ “Gold͏͏ is͏͏ well͏͏ understood͏͏ and͏͏ stable.͏͏ Since͏͏ our͏͏ users͏͏ save͏͏ in͏͏ gold,͏͏ launching͏͏ Nek͏͏ as͏͏ a͏͏ jewellery͏͏ brand͏͏ was͏͏ a͏͏ logical͏͏ progression,”͏͏ he͏͏ stated.
Continue͏͏ Exploring:͏͏ Gold͏͏ jewellery demand͏͏ set͏͏ to͏͏ rise͏͏ with͏͏ 18%͏͏ volume͏͏ growth͏͏ anticipated,͏͏ says͏͏ Nuvama͏͏ Report
Focus͏͏ on͏͏ Gold͏͏ Jewellery:
According͏͏ to͏͏ the͏͏ report,͏͏ Nek͏͏ centres͏͏ on͏͏ gold͏͏ jewellery͏͏ and͏͏ takes͏͏ advantage͏͏ of͏͏ Jar’s͏͏ established͏͏ customer͏͏ base͏͏ investing͏͏ in͏͏ digital͏͏ gold.͏͏ However,͏͏ Nischay͏͏ highlighted͏͏ that͏͏ revenue͏͏ from͏͏ the͏͏ core͏͏ digital͏͏ gold͏͏ segment͏͏ will͏͏ still͏͏ be͏͏ the͏͏ primary͏͏ growth͏͏ driver,͏͏ contributing͏͏ more͏͏ than͏͏ 50%͏͏ to͏͏ the͏͏ total͏͏ topline.
Established͏͏ in͏͏ January͏͏ 2021͏͏ by͏͏ Nischay͏͏ and͏͏ Misbah͏͏ Ashraf,͏͏ Jar͏͏ runs͏͏ a͏͏ mobile-based͏͏ app͏͏ that͏͏ enables͏͏ users͏͏ to͏͏ invest͏͏ as͏͏ little͏͏ as͏͏ INR͏͏ 1.͏͏ The͏͏ platform͏͏ claims͏͏ to͏͏ have͏͏ over͏͏ 1.5͏͏ crore͏͏ users.
Exploring͏͏ New͏͏ Features͏͏ and͏͏ Ventures:
This͏͏ development͏͏ comes͏͏ after͏͏ Jar͏͏ secured͏͏ $22.6͏͏ million͏͏ in͏͏ its͏͏ Series͏͏ B͏͏ funding͏͏ round,͏͏ reaching͏͏ a͏͏ post-money͏͏ valuation͏͏ of͏͏ $300͏͏ million,͏͏ with͏͏ contributions͏͏ from͏͏ Tiger͏͏ Global͏͏ and͏͏ Eximius͏͏ Ventures,͏͏ among͏͏ others.͏͏ The͏͏ company͏͏ has͏͏ also͏͏ recently͏͏ partnered͏͏ with͏͏ PhonePe͏͏ to͏͏ introduce͏͏ a͏͏ new͏͏ ‘Daily͏͏ Savings’͏͏ feature͏͏ designed͏͏ to͏͏ encourage͏͏ the͏͏ purchase͏͏ of͏͏ digital͏͏ gold.
Significantly,͏͏ the͏͏ e-commerce͏͏ entry͏͏ follows͏͏ reports͏͏ that͏͏ Jar͏͏ was͏͏ considering͏͏ a͏͏ venture͏͏ into͏͏ the͏͏ peer-to-peer͏͏ (P2P)͏͏ lending͏͏ sector͏͏ with͏͏ its͏͏ new͏͏ offering,͏͏ ‘Jar͏͏ Plus’.
Financially,͏͏ Jar͏͏ experienced͏͏ a͏͏ nearly͏͏ 77%͏͏ year-on-year͏͏ (YoY)͏͏ increase͏͏ in͏͏ net͏͏ loss,͏͏ reaching͏͏ INR͏͏ 122.8͏͏ crore͏͏ in͏͏ FY23,͏͏ despite͏͏ a͏͏ significant͏͏ rise͏͏ in͏͏ revenues.͏͏ In͏͏ contrast,͏͏ operating͏͏ revenue͏͏ soared͏͏ by͏͏ 1,000%,͏͏ rising͏͏ to͏͏ INR͏͏ 8.7͏͏ crore͏͏ during͏͏ the͏͏ review͏͏ period,͏͏ up͏͏ from͏͏ INR͏͏ 73.8͏͏ lakh͏͏ in͏͏ FY22.
