While covid19 lockdown has impacted startups across sectors, a few among them have bounced back quickly. Instamojo, which allows merchants and businesses to sell products through the web and accept digital payments, is the latest example.
The Bengaluru-based startup’s chief Sampad Swain announced that it has registered a growth in gross profit in April, which is 20% higher than the previous month. As per key highlights of the company’s performance in April, the gross margin was recorded at 57%. In December 2019, the figure was somewhere around 37%.
Instamojo also reduced its net burn by 50% in April. Notably, it was the lowest burn ever for the company in a month.
Despite the lockdown, Instamojo has acquired 1,500 merchants on a daily basis without advertising, said Swain in a tweet. According to him, the mode of acquisition was digital-only and the activation rate has grown by 100% from the pre-lockdown time.
On the other hand, the acquisition of GetMeAShop (GMAS) appears to have a positive impact on overall business for the Kalaari-backed firm. Swain claimed that it has around $100K plus merchants subscribed for premium services.
GMAS helps MSMEs to create and operate online stores and offer third party infrastructures such as logistics, CRM, and mobile apps.
In a recent statement to the media, Swain said that 60% of merchants from the travel and entertainment sector have been hit whereas B2B businesses, education, and freelancers providing services have grown 5X during the lockdown.
The B2B e-commerce enabler has also recorded the highest online store GMV, revenues and gross profit at 69%, 64%, and 47% respectively in April. During the period, Instamojo claims to have recorded the highest Net Promoter Score (NPS) of 44.
In February, Instamojo had also ventured into the social commerce segment through the reseller model.