Gone are the days when we used to line up for sending and receiving payments in the banks. Fintech startups have made life easy for consumers and businesses. Such startups help you to process the payment with a single click.
Instamojo is one such startup that has provided an online platform for service providers to easily receive payments from their consumers. It is a one-stop solution for financial services to micro, small, and medium enterprises.
About Instamojo Journey
Sampad Swain, Akash Gehani and Aditya Sengupta started Instamojo in September 2012. The startup targeted MSMEs as its clients. The online platform is a payment gateway for accepting all types of payments. It also helps its clients to transfer payments whenever required. The startup has its headquarter in Bengaluru.
To help its clients, Instamojo has two major services except for the payment gateways. The first one is MojoCapital. Under this product, the startup provides short term loans that are worth around $2 million to its clients. This service is monthly based. The product has shown a 25% monthly growth in this area.
The second product under the banner of Instamojo is MojoXpress. It helps the MSMEs in product delivery. As per the Instamojo claim, it is delivering around 1000 shipments every month.
As an individual or a firm, you can create a store on Instamojo without any cost. Under the store, you can add products, their details and the pricing for sale. You can edit the store whenever required. This store has an inbuilt payment gateway to receive money from consumers.
Why Instamojo Selected MSMEs as the Targeted Audience?
Talking about the role of MSMEs in Indian growth, Sampad Swain, co-founder and CEO of Instamojo said:
“Today, the MSME sector in India contributes to 37 per cent of the country’s GDP and employs over 117 million people. The scope of growth for this sector is enormous; however, the presence of several challenges, especially the lack of knowledge on several business-specific elements, prevents this.”
He further added:
“A major roadblock we identified was that several MSMEs did not know where to source information from. Through the mojoVersity platform, we aim to democratize knowledge transfer by making available course content that will help small business owners learn and be more aware of the nuances required to run and sustain a business.”
The idea of the project came from the difficulties faced by independent entrepreneurs and small businesses related to sending/receiving payments.
In the initial phase, he developed an online system for individuals to receive payments from friends and family members. Talking about the initial journey Sampad said:
“My idea was to enable people to collect money from their friends and families by creating a short link and sharing it with them. It was simple and a lot of interesting things could be done on top of it.”
The startup has raised over $10 million in funds from different investors. The firm has helped more than 3 lakh MSMEs through its payment gateway service. The firm has over 11000 online stores on its platform. Covid 19 has helped the firm to grow by 30% in the last year.