Mastercard announced a strategic investment in Bengaluru-based Instamojo, a digital solutions provider for micro, small and medium enterprises (MSMEs).
The investment will be utilised in digitising and scaling millions of MSMEs and gig workers by helping them set up online stores, accept digital payments and reach out to customers.
Recently, Instamojo forayed into online commerce after acquiring GetMeAShop, an e-commerce enablement firm.
“We are now focussed on the larger picture of providing small businesses with a platform that helps them 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,” Instamojo co-founder Sampad Swain said in a statement.
Founded in 2012 by Sampad Swain, Akash Gehani and Aditya Sengupta, Instamojo raised funds from Japan-based e-commerce platform Base and existing investors such as Singapore-based Gunosy Capital last November. The startup is backed by AnyPay, Kalaari Capital, Blume Ventures and 500 Startups.
“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,” said Rajeev Kumar, senior vice president, market development, South Asia, Mastercard. “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,”
Over the years, Mastercard has backed several startups including merchant payments startup Pine Labs, sound-based payments firm Tonetag, and artificial intelligence-based financial services firm Signzy.
The company said it had committed Rs 250 crore to support small businesses in India last year. It has rolled out several initiatives to increase awareness about digital payments, provide low-cost digital and physical payment solutions, give small merchants and kirana stores access to credit, and empower women entrepreneurs.
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