Bengaluru-based startup, Instamojo has raised $7 million in Series B funding with the aim of building most trusted fintech platform for MSMEs
The round was led by existing investor AnyPay — the Japanese fintech startup, Kalaari Capital, Beenext and angel investor Rashmi Kwatra. Gunosy Capital, the VC arm of Japanese news app Gunosy, joined as a new investor. The deal takes Instamojo to around $9 million from investors to date.
Founded in 2012, Instamojo offers independent merchants the means to operate a mobile-optimized storefront, collect payment and even take micro-loans.
The company has some 650,000 merchants, and it is adding a further 1,200 daily, CEO and co-founder Sampad Swain said in an interview to an online tech platform.
“A lot of micro-merchants in India are adopting (India’s payment service) UPI (through services like Paytm and PhonePe) but once they become a little more serious, at around 10-20 sales per month, we ask: ‘Can we give you lending, logistics, online store?’” explained Swain, who started the business with co-founders Akash Gehani and Aditya Sengupta.
It’s a market that few banks or financial institutions care about because small loans and sales require enormous scale to be relevant to them. But Swain is bullish, and he believes the company will pass one million retailers this year.
Sampad, Akash and Aditya started Instamojo to solve one problem – make the internet a trustworthy place for a business to grow.
Instamojo started with payment links – a simple URL that one can copy and paste anywhere on the internet and receive payments online via any payment mode.
Today, it provides more than just an efficient payments solution. Instamojo makes custom-tailored business tools to help a business grow on the internet.