Instamojo, headquartered in Bengaluru, India, is a fast-growing fintech company that specializes in providing digital payment solutions to micro-entrepreneurs and small businesses. Founded in 2012, Instamojo has made remarkable progress in the Indian fintech industry over the years.
In the early years of its inception, Instamojo started as a platform that enabled people to sell digital products like ebooks and courses. However, in 2013, the company pivoted to provide a payment gateway for small businesses, and since then, Instamojo has been focusing on providing valuable payment solutions to the Indian business market.
Funding and Investors:
Instamojo raised $8 million in a series B funding round led by Japanese investment company, AnyPay, along with other investors, including Kalaari Capital, Gunosy Capital, 500 Startups, and Anypay, in 2019. This funding will help Instamojo to expand its reach and venture into the rural markets.
Instamojo’s platform has revolutionized small business payments in India. The company’s mobile app and web platform provide users with an easy-to-use interface to create and process digital invoices that can be shared via email and social media. Instamojo’s user base has been growing exponentially, and the company has been effectively providing user-friendly payment options to micro-entrepreneurs, small businesses, and freelancers in India.
Reason for Layoffs:
However, like most businesses, the COVID-19 pandemic had affected Instamojo’s operations and its ability to sustain its workforce. Consequently, the company laid off six employees in April 2020, which was 6% of its total workforce. The COVID-19 pandemic has put a strain on all businesses worldwide, and Instamojo is no exception.
Statement from the Company Stakeholders:
While the layoffs were a difficult decision, Sampad Swain, the CEO of Instamojo, addressed the issue and provided an explanation on the layoffs. He said, “The COVID-19 pandemic has severely impacted several businesses globally, and Instamojo is no exception. We regret to announce the layoff of six hardworking employees due to the unprecedented situation caused by the pandemic.”