Payments collection company Instamojo has raised an undisclosed amount in pre-series B funding with Japanese payments firm AnyPay. The Economic Times reports that investor Kalaari Capital has also participated in this round.
Instamojo had last raised a Series A funding round of $5 million back in 2014 from Kalaari Capital, Blume Ventures, 500Startups and others. Prior to this, Instamojo had raised around $500,000 from 500 Startups, Blume Ventures and angel investors like Rajan Anandan, Sunil Kalra, Dave McClure, Rob de Heus, Thijs Gitmans, Pankaj Jain, Shailesh Rao, Bharathram Thothadri, and Avlesh Singh among others.
In April, the company said that close to cashflow break-even and said that it turned EBITDA positive in July. Instamojo will use the funding to expand its offerings and introduce e-commerce enabling services such as cataloguing, logistics, shipping and GST compliance assistance. The company also said it introduce financial services such as lending via third-party providers in the coming months and that it is looking for a leadership team for the same.
Currently, it has around 3,00,000 SMEs merchants. Instamojo aims to extend its wallet share to 70% by 2019 and grow its merchant base by 400% in 2018.
Product offerings
Third party apps: In November 2016, the company said that merchants and users be able to download third-party apps. At the time, Instamojo said it was getting other developers making apps for their app store and partnered with cloud telephony company Ozonetel to allow merchants to launch missed call marketing campaigns.
UPI payments: It partnered with ICICI Bank to enable payments via the Unified Payments Interface (UPI). With this tie up, Instamojo will have UPI as a payment option along with credit and debit cards, netbanking and wallets. CEO Sampad Swain told MediaNama that they have a revenue sharing agreement with the bank for every UPI transaction through their merchant base, but declined to give specifics.
Storefronts: In January, it introduced an online store that will provide users with tools to build a page and sell products on them. The storefront will be made available on instamojo.com/ and will be free to maintain. Instamojo will essentially profit from integrating its payment service into these webfronts on which it charges 1.9% of the transaction amount.
Instapay: In May last year, it launched Instapay, a payment method that lets users collect payments using their Instamojo usernames. Essentially, the user’s username would act as a proxy for their bank account, enabling to pay directly.
