Image Source: Techchrunch
Hundreds of millions of people in India have a bank account and only a tiny fraction of this population invests in any financial instrument. Fewer than 30 million people invest in mutual funds or stocks, for instance. In recent years, a handful of startups have made it easier for users. Especially the millennials to invest, but the figure has largely remained stagnant.
An India Startup believes that they have found the solution to overcome these challenges and the good thing is that it is already seeing favorable early traction. Former director of mobility startup Bounce Nishchay AG, and Misbah Ashraf, co-founder of Marsplay, founded jar earlier this year.
How Does This App Work?
The Jar is a platform where a person can invest in multiple ways and get started within seconds. The app works with Paytm to set up a recurring payment. Users can set up any amount between INR Rs1 to Rs500 for daily investments. Other than that, Jar can obtain users’ text messages and save a little amount relying on each monetary transaction they do. Let me make it easier for you to understand, for instance, if you spent Rs31 in a transaction, the app rounds that up to the nearest tenth figure 40 in the case and saves nine rupees, Pretty Amazing! And user can manually open the app and spend any amount they wish to invest. Once the money is invested in the jar, the app automatically invests into digital coins.
The Indian startup is using the old method of gold investments because people in the South Asian market have immense trust in this asset class. Indian households have storage of over 25,000 tons of precious metal, whose value is about half of the countries nominal GDP. That is why the South Asian nations are one of the world’s largest importers of this precious metal.
Jar announced, it has raised $4.5 million from a clutch of high-profile investors, including Arkam Ventures, Tribe Capital, WEH Ventures. Transactions and assets under management on the Jar app are growing by 350% every month.