With the launch of its beta version, fintech startup Instamojo has seen 5X growth in its user base. According to Akash Gehani, Co-founder and COO of the online selling platform, the number of its premium subscribers has increased tenfold since last year, and the company currently has two to three thousand premium users. It aims to increase that number another tenfold in the next couple of years to up to 30,000.
Bengaluru-based Instamojo, which started as a payment gateway software, evolved into an e-commerce platform offering MSMEs full-stack digital solutions, digital tools, and services to help them open their online store. The company’s breakthrough into e-commerce was made possible by its $5 million acquisition of GetMeAShop (GMAS), an e-commerce enablement firm, in early 2020.
The company, founded in 2012 by Sampad Swain, Akash Gehani, Aditya Sengupta and Harshad Sharma, claims to power over 20 lakh small businesses. It also aims to help entrepreneurs build successful businesses by providing services that assist them in payment collection, logistics, and even establishing their business online.
Instamojo took its beta version to test with its existing user base, leveraging their feedback to improve the platform. They then hit the market for new users in 2021 and opened to a positive response almost immediately. The startup’s range of services and products has expanded, and in the meanwhile, it has seen an upswing in its number of users.
“One of the things that we always used to hear about earlier is that Indian businesses, especially the smaller ones, will not ever pay a subscription fee…they will not pay for SaaS products. And I think that is getting turned around on its head right now,” says Akash.
He adds that users are now willing to pay if they see that the value and the cost are appropriate for their business.
By 2022, the company intends to expand both in terms of market penetration and category expansion. It seeks to meet customers’ marketing demands by providing more plug-ins and a partner business ecosystem, which it is currently developing.
Gunosy Capital, AnyPay, Kalaari Capital, Blume Ventures, Mastercard, and others are among Instamojo’s main investors. According to the COO, the company is fully funded for the next few years, although it may need to raise capital later as it grows.
In terms of revenue, Akash says the existing payment services will continue to generate the same amount of revenue while growing at a moderate pace. The startup is focusing on making the e-commerce segment a substantial source of income, which presently accounts for roughly 20 percent of overall revenue.
