Mastercard is backing Instamojo to help the Indian startup advance its full stack digital solutions to micro, small and medium enterprises (MSMEs), as well as to independent contractors working in the gig economy, The Economic Times reported on Monday (June 28).
The strategic equity investment from Mastercard is looking to help Instamojo bring new solutions to help MSMEs and independent contractors digitize operations and payments.
Instamojo, founded in Bangalore in 2012, enables MSMEs to seamlessly set up an eCommerce shop that accepts online payments via an easy onboarding procedure, according to the news outlet. With Instamojo’s platform, merchants can quickly launch an online store with integrated payments and shipping tools.
“Since inception, Instamojo has focused on empowering the MSME sector, we have continued our efforts towards bringing small business online,” Instamojo CEO and Co-Founder Sampad Swain said in a statement, per the report.
He added that the company is aiming to offer small businesses the ability to launch and grow their online enterprises beyond payments capabilities.
“MSMEs and gig workers are an important part of our Indian economy. Mastercard is committed to supporting them. Our partnership in Instamojo is a step in this direction and will enable many small businesses to grow by strengthening their digital footprint and payment acceptance capabilities,” said Mastercard Senior Vice President, Market Development, South Asia Rajeev Kumar, in a statement, per The Economic Times.
Instamojo launched several initiatives, including efforts to advance awareness of digital payments, drive inclusive growth, and more. The company aims to give smaller companies an avenue to get more credit and help women-owned businesses thrive,
The retail market in India has hit an estimated $793 billion in sales, according to figures posted for the fiscal year of March 2020. The market is anticipated to generate $1.5 trillion by 2030. The market comprises about 20 million smaller shops that sell food and other essentials, according to the news outlet. That segment also accounts for some 88 percent of sales in the physical retail market.
In collaboration with Mastercard, Tufts University’s Fletcher School indicated in January that India is in the top five economies in the momentum category. In addition, Fletcher’s Digital Evolution Scorecard indicated that India was one of the “break out economies” — those with lower scores but considered up and coming.