On-demand payments provider Instamojo raises capital from Anypay, Kalaari Capital

MUMBAI: On-demand payments provider Instamojo has raised an undisclosed amount of capital from Japanese payments firm Anypay. The round also saw participation from existing investor Kalaari Capital.

The pre-series B round marks Anypay's foray into the Indian internet landscape. The capital infusion comes almost three years after the company raised $2.6 million from Kalaari Capital, Blume Ventures, 500 Startups and others in November 2014.

The Bengaluru-based company provides payments and ecommerce offerings for SMEs looking to digitise their business. With over 300,000 small and medium businesses on its platform, Instamojo claims to cover 10% of the digitally active SMEs in India and enables about 30% of their turnover annually. Instamojo follows a commission-based revenue model, charging users 2% for usage of its payment and ecommerce solutions.


With this capital infusion, Instamojo is looking to foray into newer areas and build competencies to enhance offerings for SME users.

"We will invest in developing a host of offerings that are affordable and simple," CEO Sampad Swain told ET. "One of them is lending and credit, the availability of which is hard to come by for small businesses. That is a big opportunity for us and that is where Anypay's network will open doors for us."

"For the first time, many Indian small businesses will be able to go digital, including themselves into the mainstream financial system. We are excited about the possibilities and the future of the Indian SME market, and hold confidence that Instamojo will be able to capture that often underserved market space," said Shinji Kimura, CEO of AnyPay.