PremiumDigital services provider, Instamojo on Tuesday said that it has launched its e-commerce stack to help small and medium enterprises (SMEs) and direct-to-consumer (DTC) brands to come online.
With this initiative, Instamojo will enable DTC brands to launch their own independent online stores, and provide other services including order management, online payments, logistics, payouts, credit, along with advertising and marketing for greater visibility.
“We wanted to launch e-commerce solutions for SMEs back in 2018, however it took us 2-3 years to launch this stack. Through our online commerce stack we aren’t just helping SMEs set up digital storefronts but also equipping them with a host of other backend services needed to operate these online stores which include order management and logistics," told Sampad Swain, chief executive officer and co-founder Instamojo to Mint.
Earlier in February, Instamojo also acquired e-commerce enablement firm GetMeAShop, backed by Times Internet, to build its e-commerce stack for SMEs.
According to Swain, helping small merchants to create independent digital storefronts allows them to create brand loyalty and a direct connect with customers, as compared to listing on e-commerce websites.
Instamojo’s platform will also include a Do it for Me (DIFM) feature where its tech team will take charge of building a merchant’s website to provide a hassle free experience.
The company has been piloting its e-commerce stack since February this year and aims to provide its services to close to 100,000 DTC brands by the end of this year. It claims to have 50,000 merchants using its e-commerce stack, at present.
For its e-commerce services, Instamojo will be charging merchants a commission of 5% on value of each good sold, excluding shipping charges provided by its logistics partners.
For medium-sized enterprises the company will also offer its subscription programme for ₹7500, providing merchants access to customer insights, SMS and email campaigns amongst other features.
“The pandemic has provided the necessary tailwinds towards digital, and merchants want to go online. Further, we expect our ecommerce stack to be a strong margin positive business, even higher than our payments offering," said Swain explaining the entry into e-commerce solutions.
Currently, Instamojo is backed by the likes of Blume, AnyPay, Gunosy Capital and BEENEXT. The startup had also acquired Bengaluru-based virtual theatre and vernacular content platform, Showman, in April this year to strengthen its product and research team.
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