Instamojo, a Bengaluru-based payment gateway provider that serves to micro, small and medium enterprises (MSMEs), has released around ₹110 crore of sachet loans to MSMEs, cited Livemint.
Sampad Swain, chief executive of Instamojo, said, “Our loan portfolio has been growing at a 15% month-on-month since the launch of our MojoCapital business last year. We provide short-term working capital loans with faster disbursals compared to traditional lenders to SMEs.”
Instamojo was founded by Sampad Swain, Akash Gehani, Aditya Sengupta, and Harshad Sharma in 2012. It provides a multi-channel payment gateway to enable SMEs to manage and grow their business.
Swain further said that the company currently has over 900,000 merchants on its platform, out of which around 10% of them have used MojoCapital in the last one year.
“We are targeting to get a million customers by the end of October. And we have added around 50,000 merchants in the last 45 days alone,” added Swain.
“However, if you are a small business, you need to have enough money in hand to buy the next set of inventory. Unlike large corporations, SMEs don’t have forecasting software to forecast sales and the inability to make inventory purchases upfront without sale orders in place is a challenge for small and medium merchants,” said Swain
Furthermore, presently, Instamojo is present in Tier 1 markets like Bangalore, Mumbai, New Delhi, and Chennai which tops the list of maximum loans issued while in Tier II, cities like Gurgaon, Ahmedabad, and Lucknow saw maximum loan disbursals, as per the company.
Some of the other startups that falls under the similar roof include Aye Finance, Capital Float, Namaste Credit, Lendingkart and many more.