D2C business enabler Instamojo reports revenue growth from online stores

Contribution jumped from 2% to 20% in one year after the launch of the beta version, says start-up.

Instamojo, a digital solutions provider for D2C (direct to consumer) businesses, has said it recorded a five-fold annual growth in enrolments of monthly paid subscribers since February 2021.

The company made its entry in e-commerce space early 2021 with a product suite empowering D2C brands to launch their independent online stores. With small businesses owners shifting to the digital storefront, 20 per cent of Instamojo’s annual revenue is contributed by revenue from e-commerce online stores (versus 2 per cent in January last year). The company said it has a merchant base of more than 2 million small business owners.

“We are consistently working towards enabling as many entrepreneurs as possible across India, helping them find digital and financial independence. Post the launch of the beta version of our e-commerce solutions, we received an overwhelming response from merchants,” said Sampad Swain, chief executive officer and co-founder of Instamojo.

Instamojo’s e-commerce outlook recently found the platform recorded a 23 per cent rise in new users logging in via phones. Swain said the pandemic continued to pose its set of challenges over the past year across verticals. However, the shift in consumer behaviour during this time compelled brands to rethink their business strategies to serve their customers better.

The company said 40 per cent of the entrepreneurs that signed up with up it in 2021 had a business profile on social media. As more entrepreneurs and small businesses learn the benefits of selling independently online, the DTC model can be expected to catalyze business growth in the new normal.