The investment is aimed at empowering millions of MSMEs and gig workers by providing easy to use solutions that will help them to rapidly digitize such as setting up online stores, equipping them with digital payment acceptance capabilities, and reaching out to customers, even during the pandemic, Mastercard said in a release on Monday
Global payments technology major Mastercard has picked up an equity stake in Instamojo, a digital platform catering to small businesses and self-employed workers, for an undisclosed amount.
The investment is aimed at empowering millions of MSMEs and gig workers by providing easy to use solutions that will help them to rapidly digitize such as setting up online stores, equipping them with digital payment acceptance capabilities, and reaching out to customers, even during the pandemic, Mastercard said in a release on Monday.
Instamojo provides small and micro merchants a ready-made virtual platform through which they can set up an e-commerce business and accept digital payments. 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, Mastercard said.
‘This investment and partnership strengthen both companies’ initiative to support gig workers like electricians, personal trainers, tutors, and small F&B (Food and Beverages) operators among others, to continue to grow and run their businesses,’ it said. Last year, the US-based payments technology company committed Rs 250 crore to support small businesses in India.
Mastercard said the current investment in Instamojo is an extension of its global commitment to financial inclusion. It has pledged to bring one billion people and 50 million micro and small businesses into the digital economy by 2025. While Instamojo started as a payments solution for the small business, the company has broadened its purview by providing the small businesses with a platform which helps them to start, manage and grow their business online, Sampad Swain, CEO, and Co-Founder of Instamojo, said.
Rajeev Kumar, Senior Vice President, Market Development, South Asia at Mastercard, said MSMEs and gig workers are an important part of the 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,’ Kumar said.
PTI
Source: Business World
