Instamojo bags over $7 Mn Series B round led by Anypay

Instamojo, a P2P platform for on-demand payment and lending for small businesses has raised about $7.75 million in its Series B funding round led by Japan’s payments firm Anypay.

The round also saw participation from new investor Gunosy Capital, while existing investors Beenext, Kalaari Capital put in the rest amount. Rashmi Kwatra, founder and CIO at Sixteenth Street Capital also invested in her personal capacity.

According to an ET report, $7 million has been poured in as primary capital and $750,000 was secondary capital to allow exit to one of the early investors.

Entrackr's query to Instamojo regarding the name of investor getting exit from the company did not elicit an immediate response.

The seven-year-old startup will use the fresh proceeds to develop its mobile application and to double its headcount as well to expand the businesses.

Instamojo had recently launched two products – MojoXpress and MojoCapital. The startup will be integrating these two products for over 6 lakh merchants on its platform. MojoXpress offers one-click shipping solution to sellers on the other hand MojoCapital provide small loans to businesses.

Launched in 2012 by Sampad Swain, Aditya Sengupta, Akash Gehani and Harshad Sharma, Instamojo offers a link-based payments platform for individuals, micro-merchants, infopreneurs, freelancers, and SMBs to collect payment instantly.

In an interview with Entrackr last year, Swain revealed that the company been growing 200 per cent on a yearly basis for past three years. It is having an annual GMV run rate of $250 million and aims to close FY19 with about a billion USD in GMV.

As far as the number of merchants is concerned, Instamojo has set a target of 2 million merchants onboard by end of the financial year 2020.

The latest funding comes after a gap of almost five years of Series A round and it picked up an undisclosed sum in pre-Series B round in August 2017 from Anypay and existing investors.