Bangalore-based payment company Instamojo which helps small businesses has announced a fresh round of fundraising as it has picked $7 million (Rs 50 crore) in Series B round investment. Japanese payment firm, the existing backer AnyPay led the funding round. Kalaari Capital and BeeNext, the existing backers of the company along with new entrant Gunosy Capital also infused money in this round of investment. The fresh round of the investment takes the total amount raised by the company to $10.1 million. Blume Ventures, 500 Startups, and Rajan Anandan are the other backers who have pumped money in the 7-year-old company in various rounds of investment.
Rashmi Kwatra, a Gunosy Capital representative is set to join the board of the company as part of the deal. Notably, Shinji Kimura, the CEO of AnyPay was a director at Gunosy. Taka Inoue, the chief executive of AnyPay too is set to join the Instamojo board.
Started by Akash Gehani, Harshad Sharma, and Sampad Swain, Instamojo was launched as an MSME payment platform where it collected payments on behalf of the merchants. However, there have been a lot of revamping going forward.
It has added a free e-commerce platform to their services where users can list their products. The company is also planning to launch an advertising platform called Mojo Ads. Instamojo has also launched lending services to small businesses through Mojo Capital which it launched in 2018.
Sampad Swain, the CEO of Instamojo commenting on the funding said, With the current round, we will be creating a mobile experience comparable to the desktop. We are also building a community platform for MSMEs (micro, small and medium enterprises) to cross-sell to each other. It has been a long-standing demand from the merchants on our platform.”
Inoue, the AnyPay CEO talking about the investment said, “Our association with Instamojo (as an investor) started in August 2017. Since then, we have seen extraordinary growth at their end, in terms of sales and MSMEs (micro, small and medium enterprises) on-boarded on the platform."
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