Bengaluru: Online payments company Instamojo Technologies Pvt. Ltd on Wednesday said it has raised ₹ 50 crore in a Series B funding round from Japan’s Gunosy Capital and other investors. Existing investors including Japanese payments firm AnyPay, Kalaari Capital, Beenext Pte Ltd, and Rashmi Kwatra—founder of Singapore-based Sixteenth Street Capital—also participated in the round.
This is Gunosy’s first investment in India.
“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, in the statement released by the company.
The investment will be used for developing the mobile app further and expanding the team. Instamojo, which currently has about 150 employees, is planning to increase its headcount to about 250.
Till now, only a payment service was available on the Instamojo app, but now the company is planning to integrate other services including MojoXpress, to provide companies with logistics services, and MojoCapital to provide small loans to companies.
“2019 is a year of mobile for MSMEs (micro, small and medium enterprises). The network is built on mobile and since we have always been a desktop-first platform, we thought this was the year we will focus on our mobile application which will give easy access to our merchants," Instamojo CEO Sampad Swain said in an interview.
The company was founded in 2012 by Swain, Akash Gehani and Aditya Sengupta, as a payment gateway for MSMEs. Over the years, it evolved into an e-commerce platform to help merchants sell their products.
Several start-ups founded over the past few years focus on SME lending, including Aye Finance, Capital Float, Namaste Credit and Lendingkart. Some of these firms manage their own loan books by borrowing from non-banking financial companies and banks, while others aggregate loan offerings from banks on their platform.
Currently, Instamojo allows merchants to manage payments online using a payment link, which is sent to the merchant’s buyer or customer on-demand. On clicking the link, the buyer will be prompted to make an outstanding payment online using debit/credit card, net banking, wallets, among other methods.