Tiger Global backs India savings app Jar in $22.6 million funding – TechCrunch
Summary
In the event of an unplanned expense or emergency, many are forced to rely on friends and family or shark lenders for capital injection.Part of the reason why so many Indians never save or invest is confusion, explained Nishchay AG, co-founder and chief executive of Jar, in an interview. The startup, which is seeing an average monthly growth of 20%, is also spending far less on attracting new users: less than $1.5 per user, it said.By starting with digital gold, a well-understood and well-loved asset class in India, Jars savings app has quickly gained trust and traction with young earners interested in developing a saving and investment strategy, said Alex Cook, partner at Tiger Global, in a statement. These customers, most of whom he said live in small cities and towns of the country, are now ready to explore evaluating other instrument options, he said.The new funding extends Jars runway by three years, he said.India has become a key fintech hub in the past decade as scores of banks, startups and other institutions have raced to tap what many believe is the last great growth market.For years, local legacy banks and mutual funds have been trying to tap India masses with their products. The company has an equal measure of thoughtful execution as well as a high standard of transparency where stakeholders ranging from employees, partners and investors are fully aware of key initiatives and priorities. We are sure this approach is helping create a sustainable company with a predictable growth trajectory, said Rahul Chandra, managing director of Arkam Ventures, in a statement.