A recent survey by Nasscom shows that SaaS-based businesses have great potential in India, and Instamojo is a good example. The payment gateway solution provider was established in 2012 and has more than 1.2 million customers, including well-known companies such as UrbanClap, 91 Springboard, Dunzo, and Adani Realty. Instamojo essentially allows any business owner to start selling goods online and receive digital payments in different ways. It also allows businesses to easily build their online stores, customize and manage them via mobile devices and the web. Its biggest USP is a simple and quick setup process, even an Internet apprentice can understand. Instamojo also provides its customers with the ability to collect payments through different online modes (such as online banking, card, email, SMS, WhatsApp and even Facebook).
Since COVID-19, Instamojo’s platform has grown by 25-30%. Since April, the online business and transaction volume of Instamojo’s customer base in the education field has increased by 66.58%. The transaction volume of companies engaged in computer accessories and services increased by 95.4%, while the transaction volume of B2B companies increased by 117.54%. The online transaction volume of food retail and service industries also increased by 86.12%.
Instamojo said that transactions in the travel category dropped sharply after April, but witnessed steady growth in this category in August and September. The company said that the volume of travel business has increased 16 times and the number of transactions has increased 3 times. Instamojo plans to provide services outside India in the next few years. The company currently has 130 employees and it is looking for more professionals in technology, product and design positions.
This is the number from Instamojo:
Expert Opinion: Faisal Kawoosa, founder and principal analyst of research company techARC, said: “I think Instamojo brings a lot of convenience in making digital payments. Although the technology and other elements are the same as any other payment model, they have been able to Positioning in a very easy and simple digital payment method. The challenge they face is that many alternatives have emerged in recent years, such as Paytm. I believe that Instamojo will need some collaboration with telecom operators to carry out regular households transaction.”
When talking about the SaaS (service as industry) industry, Deloitte India partner PN Sudarshan said: “India is undergoing large-scale digitization, which brings the industry value chain into the digital field, thus realizing the shared information exchange between the entire supply chain. SMEs are an indispensable part of our manufacturing and service industries in India. To truly realize the potential of large-scale digitalization, SMEs must use enterprise-level software configured with flexible pricing models. SaaS as a business model is absolutely possible Facilitate this change, and cost-effective digital tools will help us transition from a “data-poor” economy to a “data-rich” economy.
We and Akash Gehani, co-founder and COO of InstamojoTo learn more about the company’s success story and future plans.
1) What do you think of this business idea? When did you finally take the leap of faith and formalize it?
Our founder feels this is a need, and there is no convenient way for individuals to sell and collect money through the Internet. We can see that technology will play an important role in business operations over time, and we hope to do something to help small businesses use the Internet. We believe that helping small businesses collect money online is their best stepping stone, and this idea has made us leap forward. When we shared our ideas with friends, we were full of enthusiasm. Many of them helped spread the word.
2) Can you share some interesting stories about the initial struggle period? How do you manage to overcome these difficulties? What did it teach you?
There was a time when business did not start, and it seems we will have to close. Then some use cases were explosive for us. After a period of stagnation, our revenue increased by more than 5 times in a month. We are doubting ourselves, but we have released a lot of beliefs and motivation. In addition, cooperating with banks is also a difficult attempt, because they think it is not worth it and think it is very risky. With a lot of persistence and rejection, we can finally start.
3) Every successful startup must deal with little-known challenges from the outside world. Can you provide our readers with some insights about such incidents?
At other times, we ran out of cash, but later had to dig deeper and focus on all areas where we could expand the runway and survive.
4) What is the biggest milestone since Instamojo was founded? Please provide detailed information about them.
One of our biggest milestones is to support 1 million merchants on the platform. The launch of capital and transportation products helped us shift to a full-stack platform for enterprises, which is another important milestone. Recently, especially during the Covid period, achieving profitability is also an important milestone.
5) Can you provide some detailed information about the impact of COVID-19 on your business?
Covid-19 has affected many of our existing businesses, but they responded well to it. In addition, it has forced many businesses to adopt online tools. This is an irreversible change. It has helped us acquire more businessmen. In the long run, this will bode well. Since COVID-19, our platform has grown by 25-30%.
6) Any suggestions for young Indian entrepreneurs there?
My only suggestion is to focus on the problem you want to solve and your customer. Don’t be distracted by competition, and don’t start pursuing vanity indicators, because the focus has changed from customers to investors, and many people do. You must be loyal to the motivation that drives your business and stays aligned with it.
7) What are the big plans for the future? Where will Instamojo see itself in the next five years?
Our goal is to enable everyone and companies to use the Internet to develop their business, and we will provide them with all the tools they need. Instamojo will become synonymous with starting and growing a business. At the same time, in the next few years, we will do this in other countries/regions of the world.