Instamojo records flat revenue of Rs 46 Cr in FY23

Mastercard and Times Internet-backed Instamojo, which recently shut down its core payment business, recorded a flat operational revenue of Rs 46 crore in FY23.

The company was in the news last month for putting a lid on its payments business after the Reserve Bank of India returned its application for the licence.

Decade-old Instamojo was originally a fintech startup offering payment solutions to firms. However, it repositioned itself as a D2C tech platform two to three ago and now offers digital tools to SMBs and D2C businesses to open their online stores. Payments, including online gateway, remains one of the services it offers to merchant clients.

Since the pivot, Instamojo has been reporting month-on-month profitability, compared to the standalone payment gateway revenue it had previously.

However, in the last 12 months, the platform did not add any additional revenue or income to its account, as per the results from its annual filings assessed by YourStory.

At the same time, it did manage to hit the profit mark on the back of reduced employee expenses and some major overhead costs such as communication and travel.

From a loss of Rs 1.1 crore last year, Instamojo turned profitable at Rs 8.26 crore in FY23.

Revenue from operations was Rs 46.6 crore in FY22, which remained almost the same at Rs 46.2 crore in this year. It earned Rs 7 crore from IT services, while Rs 38 crore came from a ‘revenue account’, the details of which couldn't be assessed.

Even other income remained nearly constant; it reduced by a minor margin, pushing the total income to Rs 46.2 crore, a few lakhs less than what it earned in the previous financial year.

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Expense analysis

Instamojo’s total expenses came down from Rs 48 crore to Rs 38.12 crore.

The filings show that its employee benefit expenses, including salaries, recruitment charges, and provident, were down by Rs 4 crore, at Rs 14 crore.

The other expenses, including marketing, promotions, managerial remuneration (director’s salary), insurance, and legal fees, also decreased to Rs 23.14 crore from Rs 28.6 crore the previous year.

Payment business

Instamojo now offers payments solution via a partnership, and its merchants’ (clients) payment accounts are being transitioned to licensed partners.

“We have partnered with other licensed payment aggregators and have been working with them since October. We can't share the names yet as there are talks with others too," Akash Gehani, its Chief Operating Officer, had said.

He also clarified that Instamojo’s gateway business continues to be fully functional.

A report in July by VC Circle stated that the Blume Ventures and Kalaari Capital-backed tech platform is possibly looking to raise fresh funding to let some of its early investors exit but may find it difficult to generate enough interest.