(Bloomberg) -- Global private equity investor Tiger Global Management doubled down on its investment in Indian micro-saving app, Jar, by leading a $22.6 million round which saw participation from a clutch of other investors, a partner at the fund said.
“By starting with digital gold, a well-understood and well-loved asset class in India, Jar’s savings app has quickly gained trust and traction with young earners interested in developing a saving and investment strategy,” Alex Cook, partner at Tiger Global, said. “We are impressed with the company’s rapid growth.”
The funding, through a primary issue of shares, values the one-year-old startup at $300 million, $100 million higher than when it raised $32 million in February 2022. Tiger injected funds into the company in that round also.
Jar, founded in January 2021 by two engineers, Misbah Ashraf and Nishchay AG, will use the fresh funds to expand into multiple financial services like facilitating lending, selling insurance products and advising people on investing in financial products from mutual funds to fixed deposits. It will also invest a part of the money in adding 50 more employees to its existing 80.
The company is seeing 20% average growth in users’ savings with over 9 million customer investing in the single asset of a gold-backed saving product with 220,000 daily transactions.
“We will soon apply for a shadow bank license to offer our lending products to our customers,” Nishchay said. “The work is in progress.”
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