Instamojo eyes Rs 50 Cr revenue in FY22, completes a year in ecommerce
Digital services platform Instamojo is expecting a revenue generation of Rs 50 crore by the end of FY22. This will be the first full financial year of the company’s ecommerce operations, says Sampad Swain, CEO and Co-founder, Instamojo, in an exclusive interview with YourStory’s Daily Dispatch.
The payment gateway platform transitioned into a ‘one-stop’ solution for small businesses to build their businesses.aims to enable SMBs by providing them with digital services and the tools required to set up their own store.
“We provide not just payments, but also online stores,” explains Sampad. Now evolved into a full-stack digital services provider, Instamojo provides a range of services that include auto management systems, logistics, WhatsApp support, marketing tools, and sachet loans.
The onset of the COVID-19 pandemic bolstered the digital economy, which Instamojo turned into an opportunity to launch more digital-friendly services. Small merchants were increasingly adopting digital tools during the pandemic to keep their businesses afloat. In February, the Bengaluru-based company forayed into the ecommerce space.
“We have onboarded about 1,50,000 D2C brands on the platform. Over the next six months, to close out FY22, we are expecting another 1,00,000 to be added,” says Sampad. The immediate goal, he says, is to have onboarded about a quarter of a million D2C small merchants.
The founders of Instamojo (L to R): Akash Gehani, Sampad Swain, and Aditya Sengupta
Instamojo’s focus is to primarily get more small merchants onto the platform and being able to provide services that help these merchants scale their businesses. According to Sampad, the overall size of the market accounts for about eight million merchants that are a part of the entire SME audience.
By targeting this group of merchants, Instamojo wants to deliver each component required in the process of building the business. The company plans to collaborate with third-party companies that meet the requirements of enabling SMEs.
“We want to create an extremely varied and diverse partner ecosystem,” says Sampad.
At the beginning of last year, Instamojo acquired ecommerce enablement firm GetMeAShop (GMAS) backed by Times Internet. The deal amounted to $5 million and was aimed at fueling the full-fledged business services provided by the company.
Commenting on the potential of fundraise, Sampad says the company will be closing on a funding round in the next three to six months. It has raised $15 million so far. “Expecting FY22 to close out with a quarter of a million merchants, providing both transactions services and SaaS subscriptions as our revenue model,” adds Sampad.
At present, Instamojo is backed by investors that include Blume, Gunosy Capital, BEENEXT, among others. In April 2020, the startup acquired vernacular content platform Showman to make its product and research team stronger.