Tiger Global-backed gold savings platform Jar has reported a massive jump in consolidated revenue to Rs 2,448 crore in FY25, compared to just Rs 56.4 crore in FY24, regulatory filings sourced from the Ministry of Corporate Affairs show.
"We moved from being a distributor to becoming a fully vertically integrated platform. Earlier we only booked commissions or margins as revenue, but now, as per accounting norms, we have to record the entire transaction volume as revenue,” said Nishchay AG, cofounder of Jar told Moneycontrol.
The sharp spike stems from a shift in revenue recognition, after Jar vertically integrated its gold stack. The company now books the gross value of gold sold as revenue rather than just the margin earned.
What is the change in accounting method?
When a company moves from being an intermediary to a principal in a transaction, accounting standards allow it to recognize the full value of the goods sold as revenue, rather than just the fee or margin it earned.
This is standard under Indian Accounting Standards (Ind AS 115) and IFRS 15, which govern revenue recognition.
On an operating basis, the company clocked Rs 208 crore in revenue which has jumped ninefold year-on-year during FY25.
Net losses down
Despite the revenue surge, Jar trimmed its consolidated net loss (pre-ESOP costs) to Rs 35.23 crore in FY25, down from Rs 104 crore in FY24.
On a standalone basis, Jar reported a healthier picture.
Revenue stood at Rs 186.56 crore, with total expenditure of Rs 175.6 crore, leading to an EBITDA of Rs 15.07 crore. After accounting for depreciation and amortisation of Rs 1.90 crore, the company posted a net profit of Rs 13.17 crore for FY25.
"Right now, we are going deep in gold. We want to own the complete value chain, from building our own digital gold stack to selling jewellery, and capture every part of it before expanding into other areas,” Nishchay added.
In FY24, Jar had posted Rs 56.4 crore in consolidated revenue, up 278 percent from Rs 15 crore in FY23.
Losses had narrowed to Rs 104 crore in FY24, from Rs 137 crore in FY22, while total expenses rose to Rs 160 crore.
More on Jar
The startup, founded in 2021 by Nishchay AG and Misbah Ashraf, said the vertical integration enables it to capture more of the gold value chain while also scaling new offerings like jewelry through its direct-to-customer brand Nek and insurance products.
"We turned profitable in the January-March quarter, and have remained profitable for the last two quarters. The focus now is to stay healthily profitable as we scale further,” he said.
The numbers come at a time when Moneycontrol exclusively reported on April 1 that A funding deal of around $50 million (about Rs 425 crore) between fintech firm Jar, and a consortium of investors led by Prosus, the Dutch investment giant came unstuck due to differences around the valuation of the company.
Tiger Global-backed Jar last raised money in 2022 at a valuation of around $250 million, and if new funds were infused at an amount below that, then it would be considered a down round or a flat round, which could hinder the company’s future fundraising prospects.
"We are well-capitalised and self-sustained right now. The focus is on scaling. our priority is building compliance, governance and systems so that we are ready for the future, whenever we decide,” Nishchay added.
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