Fintech start-up Instamojo has acquired GetMeAShop, a digital commerce platform for MSMEs, for $5 million in an equity deal. This acquisition, which is its first since inception in 2012, will allow Instamojo to branch into software offerings as it aims to help small businesses adopt and leverage technology without any prior technical know-how.
Launched as a payment gateway for micro, small and medium enterprises (MSMEs), Instamojo later branched into an e-commerce platform for merchants to list and sell their products and services online. Over the past five quarters, Instamojo also introduced credit products and logistics services — mojoCapital and MojoXPress, respectively.
As part of the deal, the company aims to expand its digital solution offerings to empower its 1.2 million-strong merchant base.
“On initiation of Instamojo, the primary goal was to ease business operations for small businesses. With the gradual digitisation of sectors, we realised that the challenges faced by MSMEs are beyond just digital payments. Limited access to credit, competition from e-commerce platforms and cash flow were some of the growth obstacles, along with low access and technical knowledge, which posed a greater threat. With this acquisition, the Instamojo suite of offerings will expand to enable business owners with web presence tools to start, manage and grow in the rapidly growing tech ecosystem.” Sampad Swain, CEO and co-founder of Instamojo. GMAS, which was started in 2013, helps entrepreneurs to build their websites and provides tools to create their online stores, along with a number of other capabilities.
Non-payment revenue a major contributor
Currently, Instamojo claims to have around one million registered merchants on its platform. F
or the start-up, which used to get almost all its revenue directly from payments till 2018, non-payments revenue now accounts for around 20 per cent of its overall revenue.
The eight-year-old company has raised a shade above $10 million in equity financing till date, counting the likes of Gunosy Capital, Japanese parents firm AnyPay, Beenext, Kalaari Capital, Blume Ventures, among others