Retail

Instamojo launches InstaCash to solve the liquidity challenge for MSMEs


BENGALURU: The lockdown has impacted the Indian MSME sector, leading to the shutdown of several businesses and loss of employment. Adding to this is the challenge of liquidity and access to loans for SMEs. Banks have been unable to cater to the demand for capital loans due to the lack of access to data on these small businesses about sales, customers etc. Also with rapid digitisation, several of these businesses were threatened due to their absence of online presence.

To address this, Instamojo, has launched ‘InstaCash’ to enable merchants to gain access to working capital. Merchants can avail loans for upto Rs 1 lakh, for a period of 7–14 days. Instamojo will transfer the amount to the customer once the request has been placed.

In a statement, Sampad Swain, Co-Founder and CEO, Instamojo said, “The MSMEs have faced cash-flow and access to loans challenges owing to lack of sufficient data on credit worthiness. The coronavirus pandemic has left micro-businesses reeling the under pressure to source funds for procuring raw materials, production, pay wages etc. Through InstaCash we aim to empower micro businesses through digitization.”

Instamojo has reported 25-30% growth in their merchant-base since the inception of lockdown. The company has also introduced mojoPlus which enables merchants to earn points on transactions and redeem it to avail discounts on Instamojo fees. “With our new online store going live the loyalty points will help merchants explore additional features too,” said Akash Gehani, Co-Founder & COO, Instamojo, in a statement.

Presently, Instamojo enables more tahn one million MSMEs to build, manage and grow their business.





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