Indian fintech startup Jar has reached a significant milestone, achieving cash flow positivity, according to an executive at the Tiger Global-backed company. This accomplishment comes as the three-year-old startup continues to experience rapid growth, with its user base expanding by more than 10 times last year, as revealed in an investor note reviewed by TechCrunch.

This profitability push is part of a larger trend in the Indian startup ecosystem, where many fast-growing companies are focusing on improving their financials and reducing expenses to become IPO-ready. Jar's achievement is particularly noteworthy, given its relatively short history and the competitive nature of the fintech industry.

In the past year and a half, Jar has expanded its offerings beyond its core savings and investment products, adding lending and online jewelry sales to its business. The jewelry business, called Nek, has seen significant success, with annualized sales reaching approximately $13 million, according to the investor note. This diversification strategy has likely contributed to Jar's cash flow positivity, as it reduces dependence on a single revenue stream and increases the startup's overall resilience.

The news comes as Jar is reportedly in talks to raise up to $50 million in a new funding round, according to Indian newspaper Economic Times. While the startup declined to comment on the fundraising talks, the potential injection of capital could further accelerate Jar's growth and expansion plans. The funding round would also serve as a vote of confidence in Jar's business model and its ability to execute on its vision.

Jar's success is a testament to the growing demand for digital financial services in India, particularly among younger generations. As the startup continues to innovate and expand its offerings, it is likely to play an increasingly important role in shaping the country's fintech landscape. With its cash flow positivity and potential funding round, Jar is well-positioned to capitalize on the opportunities presented by India's rapidly evolving financial services sector.

The implications of Jar's achievement extend beyond the startup itself, as it sets a positive precedent for other Indian fintech companies. As the industry continues to mature, it is likely that we will see more startups focusing on profitability and sustainability, rather than solely pursuing growth at all costs. This shift in focus could lead to a more robust and resilient fintech ecosystem in India, with companies like Jar at the forefront of innovation and growth.