To provide retailers with the ability to attain working capital, India-based payment gateway and online shopping platform Instamojo rolled out InstaCash. Retailers can receive loans for as much as Rs 1 lakh ($1,322.26) for a time ranging from seven to 14 days with the offering, The Economic Times reported.
Instamojo Co-founder and CEO Sampad Swain said per the outlet that the current COVID-19 health crisis “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.”
As of the beginning of the lockdown, the company has notched expansion of 25 to 30 percent in its customer base. It has also rolled out a mojoPlus offering that lets retailers receive points and use them to receive discounts on the company’s charges.
The current confinement due to the pandemic has affected the country’s micro, small and medium enterprise (MSME) space and caused the closure of a number of companies in addition to the elimination of jobs. At the same time, small to medium-sized businesses (SMBs) have difficulty with liquidity and loan access.
Financial institutions have not been able to meet the need for capital loans since there is not sufficient access to information on small business sales and clients, among other data.
The news comes as Instamojo unveiled the rollout of its Instamojo Credit Book that seeks to eliminate manual ledgers by making records digital per news in November.
The ledger, which can be accessed via the firm’s Android app, let companies monitor credit provided to suppliers, clients and vendors; keep track of cash receivables from suppliers, clients and vendors; maintain a centralized record of cash flow; and send reminders for payments that are due.
The Credit Book app, along with its functionality, is complimentary. The firm only reportedly charges for successful payments made through Instamojo.