Instamojo Inc., which operates an eponymous small and medium enterprises-focussed payments services company, has raised an undisclosed sum of funding from investors including the venture arm of Japan’s Gunosy.
In a blog post, the Singapore-based Gunosy Capital Pte Ltd said it had made an additional investment in Instamojo. This is the second time that Gunosy has invested in the company; it had placed its first bet in January last year.
As per digital media publication Entrackr, the investment is part of a Rs 50 crore (about $6.7 million) Series B round for Instamojo, with the Japan-based Base also participating.
VCCircle has reached out to Instamojo on the details of this fundraise and will update this report accordingly.
Instamojo co-founder and chief executive officer Sampad Swain said the company was building an online store and commerce platform for small businesses. He said the company will use the capital for expansion and to enter overseas markets, per the Entrackr report.
Demand for online store services is accelerating, partly due to the impact of the COVID-19 pandemic.
“Gunosy Capital has decided that Instamojo will continue to have great growth potential, taking into account the expansion of the company's business scale so far, and has reached this additional investment,” according to a translated version of the blog post by the firm.
The payments-focussed startup was set up in 2012 by Swain, Akash Gehani and Aditya Sengupta. According to its website, it focusses on helping businesses with services including payment collections, creating online stores, shipping products, and securing small loans.
In January last year, the company – which operates in India via Instamojo Technologies Pvt. Ltd – said it had raised $7 million (around Rs 50 crore) in a funding round led by Japanese payments firm AnyPay. Gunosy and existing investors Kalaari Capital and BeeNext also participated in the round.