Mastercard partners with Instamojo to digitally empower Indian MSMEs
By Leandra Monteiro
Mastercard today announced a strategic equity investment in Instamojo, an Indian full-stack digital solutions provider for MSMEs. This investment is aimed at empowering millions of MSMEs and gig workers by providing easy to use solutions that will help them to rapidly digitise such as setting up online stores, equip with digital payment acceptance capabilities and reach out to customers, even during the pandemic.
Instamojo is a platform that offers small and micro merchants a ready-made virtual platform upon which they can quickly set up an e-commerce business and accept digital payments, following a fast and easy onboarding process. Using Instamojo’s platform, merchants would have ready access to a fully functional online store with in-built payments and shipping capabilities, marketing tools and other value-added services such as logistics and credit facilities. This investment and partnership strengthen both companies’ initiative to support gig workers to continue to grow and run their businesses.
Sampad Swain, CEO and Co-Founder of Instamojo said, “Since inception, Instamojo has focused on empowering the MSME sector, we have continued our efforts towards bringing small business online. While we started as a payments solution for the small business, we have broadened our purview since then and now we are focussed on the larger picture of providing the small businesses with a platform which helps them to start, manage and grow their business online. It is no longer restricted to just payment collection, but also about starting their own online store, collecting payments and shipping their products. Hence creating an entire ecosystem of conducting business with ease for the small businesses. With players like Mastercard showing confidence in us, helps us broaden our horizon further.”
Rajeev Kumar, Senior Vice President, Market Development, South Asia, Mastercard said, “MSMEs and gig workers are an important part of our Indian economy. Mastercard is committed to supporting them with the company’s strategic investment and partnerships to help them unlock the power and potential of digital commerce. Mastercard’s partnership and investment in Instamojo is a step in this direction and will enable millions of small businesses to grow by strengthening their digital footprint and payment acceptance capabilities.”
According to Mastercard, it committed INR 2.5 crores to support small businesses in India last year. As part of this commitment, the company launched several initiatives like growing digital payments awareness, providing low-cost digital and physical acceptance solutions, driving inclusive growth by enabling small merchants and Kirana stores with access to credit, and empowering women entrepreneurs by increasing their business acumen.
Mastercard also created a flagship initiative, Team Cashless India, to educate and upskill small merchants on the benefits and practicalities of accepting digital payments. Some of these solutions for MSMEs include Soft PoS and QR on Card in order to expedite their digitization. This investment and partnership in Instamojo is an extension of Mastercard’s global commitment to financial inclusion which claims to bring one billion people and 50 million micro and small businesses into the digital economy by 2025.