Fintech India: Instamojo

Instamojo Fintech Asia India

Fintech Asia features Instamojo, a payments solutions provider in India that also enables e-commerce through bundled solutions. The company has been in the news recently following the investment from AnyPay, Japan.

This feature is part of the Fintech India series.

 

Sampad Swain is the CEO and co-founder of Instamojo, an on-demand payments and e-commerce platform that enables small businesses, freelancers or just about anybody with a bank account and a mobile number to get started with an online business.

A serial entrepreneur, Sampad previously co-founded Wanamo, which was acquired by GB Global AG. Wanamo was later merged with DealsAndYou, an e-coupons based company that served hyperlocal SMEs.

Sampad Swain Fintech Asia India Instamojo
Sampad Swain, Co-founder & CEO at Instamojo.com

 

How did you come about setting your focus on this particular category? Please tell us a little more about the company’s beginnings as well.

Instamojo was founded in September 2012. We understand the challenges that are associated with starting a business online. SMEs often face barriers such as expensive integration and may not be technologically savvy. We essentially wanted to solve that problem and thus, Instamojo was born.

Over the years, we have built a simple solution which allows just about anybody to start collecting payments or open an online store with Instamojo. One can register in just two minutes and start selling online.

We are looking to improve and diversify our offerings in the future. We will be taking on a vertically integrated approach of providing various core services including logistics, compliance and even financing for small businesses to help them grow.

 

What transformations have you undergone as a company since starting up?

Instamojo has grown not just in terms or product but also in terms of values and vision.

We started off with simple payment links where one could share the links to collect payments. Today, one can do a lot more, right from tracking customers and sales to designing their own business cards!

We provide end-to-end solutions to anybody that signs up with us and not only understand their needs but also look into what they need and tailor our offerings for them.

At Instamojo, we are always trying to simplify and personalise ways to enable business keeping affordability and simplicity in mind, so we can give the user a great checkout experience across mobile and web platforms.

 

Thoughts on the present Indian fintech landscape? How does it compare to the rest of the fintech majors in the world like Hong Kong, Singapore, United Kingdom, Sweden, etc. according to you?

The Indian fintech landscape is an exciting space to be in. India has witnessed a phenomenal growth in terms of innovation. It’s not just the private sector or the startups that are ballooning in the fintech space, but the government too (NPCI) has been aggressively introducing technology – UPI being in the forefront.

 

Which are the sectors in Indian fintech where you think there are untapped opportunities? How does it fit in with your product and growth plans for the immediate future?

I definitely think there’s great opportunity in the merchant-to-merchant payments and lending space, which Instamojo plans to tap into extensively. In fact, Instamojo has already acquired 10% of all digitally-enabled MSMEs and controls 30% of their annual turnover with our present offerings, payments being our core product.

We will soon launch on-demand financing and lending options for merchants amongst other digital commerce enabling offerings. We are very excited about the future.

 

Please tell us a little about your funding journey – the requirements & objectives in mind when you decided to raise a round/s; the fit you found or were looking for with your investors; what would you be looking for in the future as the business grows?

In August 2017, we raised an undisclosed amount in pre-series B funding from Japanese payments firm, AnyPay. This marks AnyPay’s foray into the Indian investment market. Previously, we had raised over US$5 million from some of the marquee global institutional funds such as Kalaari Capital, Blume Ventures, 500Startups and prolific angel investors Rajan Anandan etc.

Last month, we became EBITDA positive. We have also been growing at 10-15% MoM across metrics and have seen interest from Indian and global investors.

 

What advice would you give to other fintech entrepreneurs?

Take bigger risks! Now is the best time to challenge the status quo when it comes to delivering financial products & services across consumers and businesses digitally.

 

Anything else you’d like to add

India is at an inflection point. MSMEs contribute to about 37% of India’s GDP, totalling US$750 Bn.

By 2020, MSMEs will contribute to almost 48%. However, only 2.5 Mn (5%) are actively using computers & smartphones to trade a total annual turnover of US$60 Billion today.

These numbers are going to go up significantly in the next 24-36 months.

India will welcome several next generation digital companies with potential revenue opportunity of about US$3-5 Billion across payments, lending, logistics, commerce enabling opportunities etc.

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