Instamojo, A Bangalore-based startup that helps merchants and small businesses accept digital payments, show presence, and sell online has acquired the Gurgaon-based startup GetMeAShop, operated by Times Internet.
The deal is valued at $ 5 million and includes the participation of the Times Internet conglomerate in Instamojo. Sampad Swain, co-founder and CEO of the Bangalore-based startup, told TechCrunch in an interview.
Hundreds of millions of people have gone online in India in the past decade thanks to the proliferation of affordable Android smartphones and the availability of some of the world's cheapest mobile data plans. However, most small businesses, especially the neighborhood stores and retailers, remain offline.
A wave of startups in today's country is trying to make it easier for these traders and companies to access the Internet. GetMeAShop is such a startup. On this platform, companies can set up their website, set up an online shop and make it easier for retailers or individuals to interact with and sell to their customers via social apps such as WhatsApp and Facebook.
This acquisition is not surprising for Instamojo. The seven-year-old startup started its career as a payment provider for small businesses. Over the years, the company has introduced an online shop and rental service to meet a company's needs.
Two years ago, the startup expanded the platform by partnering with a handful of companies in the country to include a logistics service provider that allowed its dealers to pick up their parcels at their doorstep.
"This acquisition will enable us to become a full enterprise operating system," said Swain.
Instamojo has accumulated 1.2 million retailers on its platform. “It took us seven years to bring a million traders onto the platform. Now we add more than 2,000 a day. We are well on the way to reaching two million dealers by the end of this year, ”he said.
The startup also operates an app store that allows developers to use the Instamojo system to create their own apps and make money. Instamojo is not currently charging its developers, but plans to explore monetization opportunities in the future.
Pushkal Srivastava, founder and managing director of GetMeAShop, said the acquisition will give the start-up access to "sales for the target segment that we have been striving for over the years" to complement MSMEs with integrated web and commerce builder, CRM and analytics the existing range of Instamojo perfectly. "