At a Glance
Mastercard has made a strategic equity investment in Instamojo, payments, and online commerce platform. Sampad Swain, Akash Gehani, and Aditya Sengupta established Instamojo as a small business payment processor in 2012. According to the two firms, the investment would benefit MSMEs as well as gig economy workers such as small food and beverage operators, electricians, tutors, and others.
Mastercard has announced that it has made a strategic equity investment in Instamojo, payments, and an online selling platform. This investment will be used to give easy-to-use solutions to millions of micro, small, and medium businesses so they can quickly digitize.
According to the two companies, the investment would boost both businesses’ efforts to help MSMEs and gig economy employees, including small food and beverage operators, electricians, tutors, and others.
Instamojo was founded in 2012 by Sampad Swain, Akash Gehani, and Aditya Sengupta as a small company payment processor. Today, it provides end-to-end solutions for any business wanting to open an online store or digitize its operations. Its rapid onboarding procedure allows merchants to get started quickly without wasting time on paperwork. Its payment gateway, which is linked with online shops, will enable them to take orders right away.
As part of its full-stack digital offering, the platform also provides financing facilities, marketing tools, an inventory management application, and logistics, among other things.
“We are focussed on the larger picture of providing the small businesses with a platform, which helps them start, manage and grow their business online. It is no longer restricted to just payment collection, but also about starting their own online store, collecting payments and shipping their products — hence creating an entire ecosystem of conducting business with ease for the small businesses. And, With players like Mastercard showing confidence in us, it helps us broaden our horizon further.”
According to the company, Mastercard’s collaboration with Instamojo is part of the company’s ambition to bring one billion people and 50 million MSMEs into the digital economy by 2025.
“MSMEs and gig workers are an important part of our Indian economy. Mastercard is committed to supporting them with the company’s strategic investment and partnerships to help them unlock the power and potential of digital commerce. Mastercard’s partnership and investment in Instamojo is a step in this direction and will enable millions of small businesses to grow by strengthening their digital footprint and payment acceptance capabilities.”Rajeev Kumar, senior vice president, Market Development in Mastercard’s South Asia region
In 2020, Mastercard pledged Rs 250 crore (approx. $33.7 million ) to help SMEs and MSMEs and announced a slew of measures to support them, including digital payments awareness, low-cost digital and physical payments acceptance solutions, and simple loan access for small merchants and kirana shops