MSME tech startup Instamojo, India’s most payments and e-commerce platform, was founded in 2012 by Akash Gehani, Sampad Swain, and Aditya Sengupta. Instamojo permits businesses to collect payments via credit cards, debit cards, and net banking that empowers over 1,200,000 micro-entrepreneurs, startups, and MSMEs to initiate, manage, and grow their business online across and web in a few minutes. Instamojo is a simplified payment solution that provides the most accessible single window platform to route all online interactions.
As per a statement made by Sampad Swain, CEO, and founder, Instamojo is a ‘ digital payments platform bundled with tons of e-commerce features to enable any business or individual to sell, manage & grow effortlessly, securely and cost-effectively.’
A Platform for Developers and Startups
This Bengaluru-based tech startup focusses on bridging the gap between MSMEs, who find it challenging to grasp the right technology, and developers to reach out to relevant app users. With transactions being a crucial part of every business, Instamojo evolved Payment Links in India, an ‘easy to start’ & ‘easy to integrate’ payment solution, authorizing entrepreneurs and enterprises to get started with collecting payments online quickly. The startup has two flagship products to its name – MojoCapital, which helps hand out bite-sized short-term credit loans worth $2 million. The team declares that this number is growing at 25 percent month-on-month. And MojoXpress, which helps MSMEs deliver products to their customers. Instamojo allows MSMEs to go online by having created more than 11,000 online stores.
During early to mid-2013, the website started to get some traction. Akash says there were many issues with the product, but users still persevered and were enthusiastic about using Instamojo. This compelled the co-founders to redesign the product entirely.
Connecting Developers with MSMEs Across the Country
With continuous adjustments, editing, and architecting the system, the startup’s tech team could better clarify the problems, so more features were added to the product. The core technology used by Instamojo was built in-house. Akash highlighted that the founders are very product-centric and are always looking at possessing and upgrading the user experience, which leads to a sharp focus on specific technical features that can only be built in-house. They aim to provide small businesses with easy access to cutting-edge technology, at little or no cost. Earlier in November 2019, Instamojo launched Credit Book on its Android app, planning to digitize records, saving businesses from the hassle of maintaining manual ledgers, competing with investor favorites Khatabook and OkCredit.
Technology Powered Growth
In November 2014, the tech startup raised $2.6 million in Series A funding from Kalaari Capital, Blume Ventures, 500 Startups, and others. Five years later, in January 2019, this startup, headquartered at Bengaluru, raised $7 million as part of its Series B funding round. Led by Japanese investor AnyPay, the round saw participation from Gunosy Capital, Kalaari Capital, and Beenext. The Tokyo-based firm had earlier invested $4 million in Instamojo. By FY 2020, the startup hopes to bring 1.5 million merchants on the platform, diversified into being a full-stack digital services provider last September. Instamojo started its journey as a digital payment solution provider and has progressively grown into an online platform for Micro, Small, and Medium Enterprises to create, manage, and grow their businesses online.