Bengaluru-based fintech company Instamojo on Wednesday announced the closing of its series-B round of funding. Led by both existing and new investors, Instamojo raised Rs 50 crore in the funding round. Existing investors included Japanese investment firm AnyPay, Kalaari Capital, Beenext & Rashmi Kwatra, along with first time investor - Gunosy Capital.
Instamojo is a growth gateway platform for micro, medium & small enterprises (MSMEs) that enables them to build, manage and grow their business online. It is a one-stop shop for an entrepreneur that caters to their diverse business needs by leveraging technology, data and design.
Instamojo began its journey in the fintech space with its flagship product - the online payment link, trying to solve the digital payments challenge for entrepreneurs. Focused on the MSME sector, the company recently expanded its portfolio by providing logistics and lending services to small businesses. This provided the businesses smarter and simpler solutions to enhance their services and sustain in a digitally-evolving landscape.
With this new round of funding, Instamojo aims to transform itself into a full-stack fintech service provider, enabling MSMEs to build, grow and sustain in a competitive environment.
Sharing his thoughts on the new round of investments, Sampad Swain, CEO & Co-founder, Instamojo said, “The series-B funding comes as a boost to our business and we are grateful to our investors for believing in Instamojo’s vision. With the introduction of our recent lending and logistics services, Instamojo is today on its way to becoming the 360º digital-enabling partner for MSMEs for all shapes & sizes.”
Founded in 2012 by Sampad Swain, Akash Gehani and Aditya Sengupta, Instamojo received their first round of investments in 2014, followed by a pre-series B funding led by Japanese based firm AnyPay in August last year.
Speaking on being part of Instamojo’s series B funding round, Taka Inoue, CEO of AnyPay said, “Our association with Instamojo started in August 2017 and since then we have only seen extraordinary growth at their end, in terms of sales and MSMEs on-boarded on the platform. Now Instamojo is all set to evolve from just being a payments company to full stack service provider who supports logistics and short terms loans to empower Indian MSMEs and we are confident that Instamojo will soon become indispensable for all entrepreneurs in India. AnyPay joined this round as a continuation from the previous round and I, myself will be joining Instamojo team as a board member.”
The series B round also saw the participation of first time investor Gunosy Capital. "We believe that digital and cashless economy has grown rapidly in India, and its e-commerce market is also expanding. From that background, Instamojo has been doing great business in the market and is expected to continue expanding. ", said Yuki Maniwa, Director of Gunosy Capital.
Instamojo now works with and enables over 600,000 MSMEs to build, manage and grow their business. As part of their upcoming plans for 2019, the company aims to introduce promotional services, helping the MSME sector stay relevant in a competitive digital business landscape.
Instamojo had raised pre-series B funding from AnyPay. In November 2014, the company raised $2.6 million in series A funding from Kalaari Capital, Blume Ventures, 500Startups and others. Prior to this, it had raised approximately $ 500,000 from 500 Startups, Blume Ventures and angel investors Rajan Anandan, Sunil Kalra, Shailesh Rao, Rob de Heus among others.