MSMEs are a significant part of the Indian economy, contributing to 29% of the country’s GDP, despite a population of 63 million MSMEs in the country. Speaking on the milestone achievement, Sampad Swain, Co-Founder & CEO, Instamojo said, “The challenge of Cash Crunch has long been a growth hurdle for small businesses across the country. At Instamojo, our focus has always been towards empowering the growth of the MSME sector through our products and services. Through sachet loans, thousands of small businesses have benefitted, opening up several growth avenues. The tremendous response we have received since the launch of our lending arm is a witness to this positive development. This also indicates the progressive transition of the otherwise traditional MSME sector, towards digital methods which in turn also contributes to the larger purpose of Digital India.”
Sachet loans offer Next Day Payouts, Instant Payouts and Same Day Payouts which was recently introduced. Of the Tier I markets, Bangalore, Mumbai, New Delhi and Chennai top the list with the maximum loans issued, while in Tier II, cities like Gurgaon, Ahmedabad and Lucknow saw maximum loan disbursals. Of the three segments, Next Day Payouts is the most-sought after payment option, followed by Instant Payouts.
Instamojo provides a host of services ranging from digital payments, logistics to lending. The company today works with and enables over 900,000 MSMEs to build, manage and grow their business. As part of their upcoming plans this year, Instamojo aims to introduce promotional services, helping the MSME sector stay relevant in a competitive digital business landscape.