Instamojo, a digital services provider, announced Tuesday the launch of its e-commerce stack to assist small and medium enterprises (SMEs) and direct-to-consumer (DTC) brands in going online.
Instamojo will enable DTC brands to launch their own independent online stores through this initiative, as well as provide additional services such as order management, online payments, logistics, payouts, and credit, as well as advertising and marketing to increase visibility.
“We desired to launch e-commerce solutions for SMEs in 2018, but it took us approximately 2-3 years to complete this stack. We’re not just assisting small and medium enterprises in setting up digital storefronts; we’re also equipping them with a slew of other backend services required to operate these online stores, such as order management and logistics “Sampad Swain, Instamojo’s chief executive officer and co-founder.
Earlier this month, Instamojo acquired GetMeAShop, an e-commerce enablement company backed by Times Internet, to expand its e-commerce stack for SMEs.
Swain asserts that assisting small merchants in establishing independent digital storefronts enables them to build brand loyalty and establish a direct connection with customers, as opposed to listing on e-commerce websites.
Additionally, Instamojo’s platform will include a Do it for Me (DIFM) feature, in which the company’s technical team will take care of building a merchant’s website, ensuring a hassle-free experience.
Since February, the company has been piloting its e-commerce stack and aims to provide its services to close to 100,000 direct-to-consumer brands by the end of the year. At the moment, it claims to have 50,000 merchants using its e-commerce stack.
Instamojo will charge merchants a 5% commission on the value of each item sold, excluding shipping charges provided by its logistics partners.
For small and medium-sized businesses, the company will also offer a subscription programme for $7500 that includes customer insights, SMS and email campaigns, among other features.
“The pandemic has created the necessary tailwinds for digital transformation, and merchants are eager to go online. Additionally, we anticipate our e-commerce stack to be a profitable business, even more profitable than our payments offering “Swain explained the company’s foray into e-commerce solutions.
Instamojo is currently backed by Blume, AnyPay, Gunosy Capital, and BEENEXT. Additionally, the startup acquired Showman, a virtual theatre and vernacular content platform based in Bengaluru, in April this year to bolster its product and research teams.