In a market fixated on India's richest 10 million consumers, Jar has struck gold by focusing on the other 99%. It's time to talk about what makes them special.
Loved this piece (also an investor in Jar, as a disclaimer). Knew about Nek but wasn't aware of the backwards integration into the gold stack. Thanks for writing this one!
First off, the claim that this business model is somehow "uniquely Indian" is fundamentally flawed. It's a reductive perspective that ignores the complex, interconnected history of financial systems.
Many assume Indians' affinity for gold is some ancient cultural quirk. But here's the reality: it was primarily a rational response to underdeveloped financial and legal institutions. When formal banking systems are weak, physical assets become your safety net.
Interestingly, this isn't just an "Indian" phenomenon. Look at late medieval Europe, where elites relied on gold coins. But guess what? Gold as a currency was incredibly impractical. Try dividing a gold coin into small denominations or carrying substantial gold around – not fun.
The elegant solution? Banks. They would:
- Store gold for customers
- Issue certificates or IOUs
- Allow these "notes" to be traded
This became the basis of the gold standard: a bank's "currency" pegged directly to its gold reserves.
Sound familiar? It's remarkably similar to modern fintech models like Jar.
**The moral of the story:** The more the world changes, the more fundamental human financial strategies remain the same. Innovation often looks like reinvention, but it's really just solving age-old problems with new tools.
Thanks for this interesting perspective! You correctly identify the evolution from gold-based monetary systems to paper-based systems. The uniquely Indian thing about Jar is how they remixed pygmy deposits and sachetization to create a product that speaks to Indians' exceptional love for gold.
I'd argue Indians' affinity for gold will go away in a generation or two as your legal and financial system become more efficient and trustworthy. The Chinese might keep buying gold due to the higher risk of political persecution.
What a delight it was to read this! The content is very researched and informative while the AI generated pics with the quirky captions offer a splash of humour to engage the reader. The result of great collaborative efforts shows in the quality of the work, Loved every bit of it! Will recommend to some friends and keep up the good work!
Thanks for the piece @tigerfeathers. Great to read the inspiring story of JAR and the maturing of the India Digital stack and shaping of businesses for BHARAT ..!
Iconic piece for an iconic company. What an effort🎩
Loved this piece (also an investor in Jar, as a disclaimer). Knew about Nek but wasn't aware of the backwards integration into the gold stack. Thanks for writing this one!
Thank you Rahul!
First off, the claim that this business model is somehow "uniquely Indian" is fundamentally flawed. It's a reductive perspective that ignores the complex, interconnected history of financial systems.
Many assume Indians' affinity for gold is some ancient cultural quirk. But here's the reality: it was primarily a rational response to underdeveloped financial and legal institutions. When formal banking systems are weak, physical assets become your safety net.
Interestingly, this isn't just an "Indian" phenomenon. Look at late medieval Europe, where elites relied on gold coins. But guess what? Gold as a currency was incredibly impractical. Try dividing a gold coin into small denominations or carrying substantial gold around – not fun.
The elegant solution? Banks. They would:
- Store gold for customers
- Issue certificates or IOUs
- Allow these "notes" to be traded
This became the basis of the gold standard: a bank's "currency" pegged directly to its gold reserves.
Sound familiar? It's remarkably similar to modern fintech models like Jar.
**The moral of the story:** The more the world changes, the more fundamental human financial strategies remain the same. Innovation often looks like reinvention, but it's really just solving age-old problems with new tools.
Thanks for this interesting perspective! You correctly identify the evolution from gold-based monetary systems to paper-based systems. The uniquely Indian thing about Jar is how they remixed pygmy deposits and sachetization to create a product that speaks to Indians' exceptional love for gold.
I'd argue Indians' affinity for gold will go away in a generation or two as your legal and financial system become more efficient and trustworthy. The Chinese might keep buying gold due to the higher risk of political persecution.
What a delight it was to read this! The content is very researched and informative while the AI generated pics with the quirky captions offer a splash of humour to engage the reader. The result of great collaborative efforts shows in the quality of the work, Loved every bit of it! Will recommend to some friends and keep up the good work!
Thanks for the piece @tigerfeathers. Great to read the inspiring story of JAR and the maturing of the India Digital stack and shaping of businesses for BHARAT ..!