Daily gold savings app Jar is in late-stage talks to score a new round led by existing investor Tiger Global, said three people aware of the specifics of the transaction. This would be the second funding round for the Bengaluru-based company in the past four months.
“Tiger Global is leading a $50 million round along with the participation of other existing backers including Rocketship, Third Prime and Stonks,” said one of the sources requesting anonymity as talks are private.
According to sources, Tiger will infuse 70-80% of the Series B round. “The term sheet has been signed and if nothing goes wrong at the last moment, the deal will be closed in a few weeks,” added the person quoted above.
Almost four months ago, Jar had raised $32 million in a Series A round led by Tiger while Rocketship.vc, Third Prime, Stonks, Force Ventures Arkam Ventures and WEH also participated. With the closure of the Series B round, the company’s total fundraising will be near $100 million.
Founded by Nishchay AG and Misbah Ashraf, Jar allows users to invest as low as Re 1 in digital gold. The investments in digital gold are backed by physical gold of the same amount and investors can choose to withdraw that much gold or liquidate it at any time.
“Jar is likely to be valued anywhere between $350 to 400 million,” said the second source who also requested anonymity. It’s worth noting that Jar was valued at around $200 million during its Series A round.
The company will also expand its offerings and set to get into the distribution of insurance, loans and other investment products, said sources.
Responding to Entrackr‘s queries Jar said that it’s too early to comment in this market. Queries sent to Tiger Global didn’t elicit any immediate response. We will carry their comments as and when they respond.
While Jar doesn’t have a direct competitor in India currently, it indirectly competes with the likes of Indiagold and Rupeek in the gold lending space.