Bengaluru-based payment solutions provider Instamojo has raised ₹54.25 crores ($7.75 million) in series B funding from Japan’s payment giant AnyPay. Investors like Gunosy Capital, Beenext, Kalaari Capital also participated and invested in the funding round. Sixteenth Street Capital’s CIO Rashmi Kwatra also infused funds in her personal capacity.
According to a report by Economic Times, ₹49 crores ($7 million) has been invested as a primary capital while ₹5.25 crores ($750K) has been invested to allow exit to one of the early investors. The startup plans to use the freshly raised capital to develop its mobile application and hire more team members in order to further expand the business.
The startup recently launched two new products – MojoCapital and MojoXpress. Instamojo plans to integrate these two fresh products for over 6 lakh merchants that use the platform. MojoCapital provides small-sized loans to businesses while MojoXpress offers one-click shipping solutions to sellers.
Founded by Harshad Sharma, Akash Gehani, Aditya Sengupta and Sampad Swain in 2012, the startup offers a link-based payment solution for individuals, micro-merchants, entrepreneurs, freelancers and small and medium business owners to collect payment via WhatsApp, Email or SMS.
The startup has raised a total of ₹70.7 crores ($10.1 million) in five funding rounds since its inception. Earlier in November 2014, the startup raised ₹18.2 crores ($2.6 million) in series A funding from Kalaari Capital, Blume Ventures and 500 Startups. Prior to that in March 2013, Instamojo raised ₹3.5 crores ($500K) from Blume Ventures, Rajan Anandan and a clutch of other angel investors.
Instamojo has witnessed a 200 per cent year-on-year growth for the last three years. The startup has an annual GMV run rate of ₹1,750 crores ($250 million) and aims to close next financial year with about ₹7,000 crores ($1 billion) in Gross Merchandise Value. The startup has set up a target to onboard 20,00,000 merchants by the end of 2020.