Instamojo to expand its footprint, sets target of 1 million SMEs

New Delhi, Apr 6 (KNN) In a recent development, online payment solution provider Instamojo Technologies Pvt. Ltd is announced its plan to expand into business loans, logistics and advertising services for small merchants.

Bengaluru-based Instamojo which primarily focuses on the SMEs is targeting to onboard at-least 1 million SME customers by the end of FY19, Sampad Swain, a company executive said in a press interview.

He said that presently 400,000 SMEs using its payment services.

Several start-ups have sprung up in the past that focused on SME lending and further online lending firms have picked up interest among investors and consumers, as banks struggle with rising NPA’s and bad loans.

He further informed that the company is looking at applying for an NBFC license to offer loans directly from the balance sheet as they increase their lending process in FY19.

He said, initially when they will use third party balance sheet, they will deploy data modeling and risk analysis to process online loans.

Currently, Instamojo allows merchants to manage payments online using a payment link, which is sent to the merchant’s buyer or customer on-demand. On clicking the link, the buyer will be prompted to make an outstanding payment online using debit/credit card, net banking, wallets, among other methods.

SMEs are better off with the use of payment link which can be generated anytime for any value instead of using a payment gateway services which is costly and time consuming, he added.

Further to solve the problem of online listing of products, Instamojo permits merchants to list their products on a web store so that SMEs don’t have to take the burden of setting up a standalone website.

Swain added that the company is also planning to introduce GST compliance software, tax filing services, cataloging, and shipping services for SMEs that sell products online on its platform. (KNN/YV)