Introduction to Instamojo:
If you are a blogger, entrepreneur or digital marketer, you need an online payment service to receive your clients’ payments. This is where Instamojo comes in, enabling business owners to sell their products online and collect payment through various modes.
Sampad Swain and three other friends, Harshad Sharma, Akash Gehani and Aditya Sengupta, jointly founded the fintech startup, Instamojo, in 2012. The concept enabled small businesses nationwide to quickly access payment gateways for their needs. Instamojo counts prestigious names like UrbanClap, 91 Springboard, Dunzo, and Adani Realty, among its customers.
This brief Instamojo case study attempts to delve into the functioning of Instamojo and lay out the reasons for its successful run.
Business Model:
Instamojo offers the MSME Sector – namely, Medium, Small and Micro Enterprises a ready-to-use platform on which they can maintain their e-commerce businesses and accept digital payments. Thanks to Instamojo’s platform, merchants can access ready-to-use online stores that facilitate online payments and other value-added services such as logistics and credit facilities.
Unlike other payment gateways, Instamojo offers a free basic account with no minimum transaction requirements. However, Instamojo charges fees for every transaction. These fees vary from 5% and Rs 3/- to 2% and Rs 3/- per transaction depending on the package signed up for.
You can also check this out IKEA Case Study – Born in the Shadow of Conflict
Some of the payment options supported by the Instamojo payment gateway are:
- NEFT/ RTGS/ Bank transfer
- Debit/ Credit Cards
- Netbanking
- Wallets
- UPI
- EMI options
Instamojo offers many benefits to the traders on its platform.
- Referral program – Businesses referring other businesses to the platform can earn rewards and cash bonuses.
- Faster payouts – Businesses can request payouts and receive funds within 24 hours. This facility works even on bank holidays.
- mojoXpress – Instamojo’s logistics arm offers shipping services across 26,000 pin codes in India, along with doorstep pickup and delivery.
Instamojo Revenue Figures and Growth:
This curated Instamojo case study reveals that the firm earned 30 crores in revenue as of 2021, and it has ambitious plans to boost the revenue by 40% to 50 crores by the end of 2022. The firm ended the Financial Year (April 2020) with its balance sheet in the black, courtesy of a 20% increase in gross profit over the corresponding period in March 2020.
Their primary clients are from the following industries:
- Education.
- Information Technology.
- Food.
- Retail.
- Entertainment
- Travel
Advantages of Instamojo:
- They have a multi-tier pricing structure with no setup cost.
- No minimum transaction commitment.
- The online store can sell physical and digital products.
Conclusion:
From a payment gateway service provider to small businesses, Instamojo offers various services – a complete payment gateway, accounting, tax services, loans, marketing, and accounting. It now serves over 800,000 Indian businesses across 29 States and 7 Union Territories and has over ten million customers using the platform.
Thanks to their perseverance, Instamojo overcame many hiccups along the way to emerge as among the top fintech companies in the country.
