Mumbai-based payments solution provider Instamojo has secured an undisclosed amount of series A funds from Kalaari Capital. Previous investors like Blume Ventures, 500 Startups, and others also participated in the same round. The raised sum would be utilized to boost marketing, product development, and the hiring of new talent while the startup shifts its base to Bangalore. Vani Kola, managing director at Kalaari Capital, will join the board.
Instamojo offers a uniform ecommerce solution that includes instant payment collection through a simple URL. For now, the company offers solutions for trading in digital goods, ticketing, services, invoices, and more. The sellers can quickly set up their shop online and sell products by simply sharing a corresponding link. To create a buzz about the product, the startup offers SocialPay tool which lets individual pay with a post on Facebook or a tweet on Twitter instead of money.
Founded in 2012 by Sampad Swain, Harshad Sharma, and Akash Gehani, Instamojo wants to develop a frictionless payments ecosystem. Swain says, “We’re making it easy for individuals as well as small businesses to boost their time to market by offering ecommerce infrastructure that takes care of technical setup, upfront costs, and access to distribution channels on web and mobile.”
The startup has previously been backed by prominent angel investors such as Rajan Anandan, Sunil Kalra, and Dave McClure.
Speaking of her firm’s investment, Vani says, “Instamojo’s product is one of the most innovative solutions we have seen so far by a passionate team. A large number of SMBs in India offer a significant market opportunity.”
While Instamojo aims to establish a broader payments ecosystem, it competes with other payment solutions providers such as Paytm, PayU India, and Pay With Amazon.