Instamojo recently turned into the D2C e-commerce space. The e-commerce platform helps simplify the process of taking an offline business to the digital format. Instamojo was co-founded in 2012 by Sampad Swain, Akash Gehani and Aditya Sengupta. MI speaks with Sampad Swain, CEO & Co-founder, Instamojo about their USP and their growth prediction.
Let’s read:
Q) Tell us more about Instamojo?
Sampad Swain: Bangalore-based Instamojo started in 2012 with Payment Links – a simple URL used to receive payments online via any payment mode. The company has since pivoted from payments to enter the e-commerce space by providing digital solutions to entrepreneurs and MSMEs, enabling them to transform into online D2C businesses, as the beta version was activated in February’21. Today, Instamojo makes custom-tailored business tools to help D2C companies and MSMEs grow on the internet, providing more than just an efficient payments solution. With a mission to make the internet a trustworthy place for a business to grow. It is one of the first to build a Do-It-Yourself (DIY) SaaS platform for MSMEs in India. In early 2020, Instamojo acquired the Times Group-backed company GET ME A Shop (GMAS), a SAAS-based model of starting online stores for businesses that are homegrown and aspirational.
The e-commerce platform helps simplify the process of taking an offline business to the digital format. The platform is suitable for the smallest of businesses, and will broadly offer merchants the following:
- The tools to build and manage your business website, and gain digital independency
- Integrated services which include digital payments, logistics, instant pay-outs, access to credit, marketing tools, and CRM
The Do it for Me (DIFM) feature where Instamojo’s tech experts take charge of building a merchant’s website to provide a hassle-free experience.
Also read: magicpin joins hands with Republic Media to build Bharat’s retail
Q) How do you differentiate yourself from others?
Sampad Swain: As a full-stack SAAS provider for D2C businesses, our products and features are built to give every business the complete eCommerce experience. We have the exclusive Do-It-For-Me (DIFM) plans in which is why pay extra for added plugins and hiring developers when we can build it for you where Instamojo’s tech experts take charge of building a merchant’s website to provide a hassle-free experience. Our features include a fully-loaded eCommerce website in which we got everything covered starting from order management to marketing tools, SEO to analytics & reseller networks. And, Instamojo also has secure web hosting and payments. PCI-DSS certified payments, SSL certified websites, and more to keep your business 100% safe. The other digital solutions offered include online payments, logistics, credit services, a free learning platform called mojoVersity, and more for businesses to gain visibility.
Q) Tell us more about your recent pivot into the D2C e-commerce platform?
Sampad Swain: We started as a payment gateway link for small businesses and then around early 2020 we acquired Get Me A Shop. After the launch of the beta version in February’21, the platform saw significant attraction from the existing user base adopting the online store business. The revenue from active paid users has grown almost 10x and user numbers have grown too. Given our keenness to provide more to our customers, we pivoted towards providing end-to-end D2C e-commerce facilitation for D2C businesses.
Before the acquisition, the payment gateway was our primary revenue model; however, currently, the payment gateway link is a feature in addition to the plethora of other store services we offer. In this D2C e-commerce space, we are primarily focusing on social media sellers who are in most cases selling direct to consumers. They need a simple digital platform to get started and we provide them with a simple, easy, and convenient way to get started.
Q) What kind of growth have you witnessed in this quarter post the announcement?
Sampad Swain: Since the activation of the beta version of the e-commerce platform, the company has seen 2.5 lakh plus D2C merchant subscriptions, accounting for more than 100% growth in the 1st quarter post the launch. Instamojo currently has a merchant base of more than 2 million small business owners. There has been a significant growth of about 12-13x in terms of paid subscribers. The platform witnessed a 135% uptick in DTC merchant onboarding during the festive season in October-2021.
Also read: Zoomcar’s host program now live with over 5,000 cars across 8 cities
Q) What is your growth prediction in upcoming quarters?
Sampad Swain: Instamojo, as an eCommerce platform for independent business and D2C brands, aims to onboard more than 250,000 small businesses by the end of FY’22. The company aims to see a 3-5x increase in merchant onboarding in the coming quarters. In terms of partners, Instamojo has 30+ partners in segments such as shipping, order management, etc.
Q) What are your future plans and programs?
Sampad Swain: In addition to our estimated growth numbers and our aim to onboard over 250,000 D2Cs and small businesses by the end of FY’22, we wish to extend the service capability of Instamojo which is the Do It For Me (DIFM) plan. We want to expand that capability network to channel partners and expansion through partner integration. We also want to do is to build capabilities for 3rd party developers.
