Instamojo, a fintech startup based in Bengaluru, has witnessed remarkable growth with the launch of its beta version. The company’s user base has surged by 5X.
According to Akash Gehani, Co-founder and COO, the number of premium subscribers has increased tenfold compared to the previous year, now standing at two to three thousand. Instamojo aims to expand this premium user base tenfold further in the coming years, reaching up to 30,000.
Originally a payment gateway software, Instamojo has transformed into a comprehensive e-commerce platform offering digital solutions and services to empower MSMEs in setting up their online stores. This transition was made possible through the acquisition of GetMeAShop (GMAS), an e-commerce enablement firm, with a $5 million investment in early 2020.
The inception
Founded in 2012 by Sampad Swain, Akash Gehani, Aditya Sengupta, and Harshad Sharma, Instamojo boasts a user base of over 20 lakh small businesses.
The company aims to empower entrepreneurs with services for payment collection, logistics, and establishing their online presence.
After beta testing with existing users, Instamojo launched for new users in 2021 to a positive reception. The startup has since expanded its range of services and witnessed a notable increase in its user count.
Making moves
In a shift from the past, Akash, COO of Instamojo, notes that Indian businesses, particularly smaller ones, are increasingly willing to pay for subscription fees and SaaS products that offer value for their operations.
By 2022, Instamojo plans to expand its market presence and broaden its service categories to meet evolving customer needs. The company is actively developing more plug-ins and a partner business ecosystem. Key investors in Instamojo include Gunosy Capital, AnyPay, Kalaari Capital, Blume Ventures, Mastercard, and others.
Akash states that the company is well-funded for the next few years, with potential future fundraising as it grows. While payment services will maintain consistent revenue growth, Instamojo is strategically focusing on e-commerce, which presently contributes around 20 percent of the total revenue.
Investors till now
Leveraging technology, data, and design, the tech-powered Instamojo is poised to redefine the D2C landscape by addressing the unique needs of sellers, igniting India’s entrepreneurial spirit.
Instamojo has secured a total of $8.4 million in funding across six rounds. In January 2019, the company raised $7 million in its Series B funding round, led by Japanese investor AnyPay. Other participants in this round included Gunosy Capital, Kalaari Capital, Beenext, and other existing venture capitals.
Prior to this, the Tokyo-based firm had invested around $4 million in the startup. In November 2014, Instamojo had successfully raised $2.6 million in its Series A funding, with contributions from investors like Kalaari Capital, Blume Ventures, and 500 Startups,
Facing competition
In a highly competitive market driven by rapid digital advancements, Indian organizations face stiff competition. Fintech startups like Instamojo constantly strive to innovate payment methods. Instamojo faces competition from several players, including Razorpay, CC Avenue, PayU, and Amazon Pay, among others.
Plans ahead
Instamojo, a platform currently serving over 3 lakh small-and-medium businesses with a reputation for speed and ease of use, is eyeing substantial growth and innovation in the future.
Despite competition, the company remains undeterred. Instamojo’s future plans involve creating a unified payment gateway platform for its 700,000 registered MSMEs. Presently, it has around 3000 premium users and aims to increase this number to 30,000 within the next couple of years.
The company has played a pivotal role in helping over 11,000 online stores and has experienced a 25-30% growth since the onset of the Covid-19 pandemic. With the trust of more than 20 lakh businesses in India, Instamojo is poised for an ambitious future.
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