Fintech start-up Instamojo forays into e-commerce

Sangeetha Chengappa Bengaluru | Updated on June 08, 2021

Sampad Swain, CEO and co-founder, Instamojo   -  Somashekar GRN

Looking to onboard over one lakh ‘direct to consumer’ brands by end of year

Instamojo, a full-stack digital solutions provider for MSMEs, has entered the e-commerce space with the launch of its new e-commerce platform enabling small businesses and DTC (direct to consumer) brands to come online.

The entry into e-commerce was possible with its acquisition of GetMeAShop (GMAS), an e-commerce enablement firm, for $5 million in early 2020.

Instamojo will now enable DTC brands to launch their own independent online stores, empowered by the existing digital solutions offered by the company, including online payments, logistics, credit services, marketing tools, CRM, free learning platform called mojoversity and more for businesses to gain visibility.

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Redefining online store biz

“When we began Instamojo, the focus was on enabling digital payments through our pioneering product, the ‘payment link.’ In 2018 we realised that a model based on standalone payments will not survive, and that we need to look for new avenues of growth via a diversified commerce platform with characteristics like brand affinity, cascading network effects, higher margins, etc., and this we found in e-commerce. We already had the free online store feature since inception, the acquisition of GMAS, a SaaS based model of starting online stores for businesses only, strengthened our proposition for merchants. We aim to redefine online store business, and be one of the first to build a DIY SaaS business for small businesses and DTC brands in India,” Sampad Swain, CEO and co-founder, Instamojo told BusinessLine.

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Beta version

The company came out with a beta version of the e-commerce platform in February 2021 and has already garnered 50,000 DTC merchants for its e-commerce platform who are selling on average ₹20,000 to ₹50,000 a month. These include apparel, arts & crafts, phone accessories and pickle brands. “We are looking to onboard over 1 lakh DTC brands by the end of this year and expect e-commerce to contribute over 50 per cent to our revenue in three years,” said Swain.

Founded in 2012, Instamojo raised ₹50 crore in Series B in January and an undisclosed pre-Series C round in the later part of 2020. It has raised over $10 million to date backed by investors including Kalaari Capital, AnyPay, Blume Ventures and 500Start-ups, among others.

Published on June 08, 2021

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