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Jar

Tiger Global-backed Jar unveils new ESOP plan worth Rs 105 Cr

Jar

Gold savings app company Jar has unveiled a new employee stock option plan (ESOP) for its employees. The company has joined several growth stage companies which have launched new schemes for their employees in the past few months.

The Bengaluru-based company has passed a special resolution to allot 1,196 ESOP options to its present and future employees which will be converted into equity shares at a later stage, regulatory filings with ROC show.

As per Fintrackr’s estimates, the size of the ESOP will be worth around Rs 105 crore or a little over $13 million.

The development comes at a time when Jar is in the process of raising around $50 million in a new round led by Tiger Global. Entrackr was first to report the potential funding round on May 27. In February, the company closed a $32 million Series A round and so far it has amassed over $36 million including a $4.5 million seed fund.

Jar has also issued 228 equity shares to its co-founders and directors – Nishchay AG and Misbah Ashraf – via sweat equity worth Rs 20 crore, the filings added. Importantly, the company has issued sweat equity to the directors as its mobile application met the milestone of 4,50,000 funded accounts.

Jar allows users to invest as low as Re 1 in digital gold which is backed by physical gold of the same amount. Investors can choose to withdraw that much gold or liquidate it at any time.  Going forward, the company will also get into the distribution of insurance, loans and other investment products.

Shruti Gupta | Entrackr

The company is arguably the segment leader as it doesn’t have any direct competitors in India as of now but its model is akin to the US-based Acorns and Stash.

While the frequency of ESOP buyback in the second half of 2022 has been quite low as compared to the first half, a clutch of growth and late-stage startups have either expanded or launched their new ESOP scheme this year. The list includes Amagi, NoBroker, DealShare, Money View, Purplle, LEAP, Wiz Freight, Ather Energy, Ninjacart, Ecom Express, Pine Labs and VeGrow among others.

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