Instamojo Shuts Down Its Payments Business, What Next?
Instamojo, a fintech startup supported by Mastercard, recently had to shut down its core payments business. This happened because the Reserve Bank of India (RBI) did not approve their application to work as a licensed payments aggregator.
The decision of the Reserve Bank of India was made towards the end of September 2023, and it was based on the company not meeting the required criteria set by the bank.
In response to this setback, Instamojo has decided to change its business focus away from payments. This is a significant shift (startup pivot) for the company, as they were previously heavily involved in the payments sector. Despite this change, Instamojo continues to operate, exploring other business avenues.
One of the company’s notable moves was in June 2023. Instamojo partnered with Nova Registry to give businesses more relevant domain names, stepping away from the traditional “.com” format.
This move was aimed at helping businesses establish a stronger online presence with domain names (.link and so on) that are more descriptive and memorable.
Regarding the core business of Instamojo, it has primarily been focused on providing a platform for small businesses and individuals to build online stores and manage payments.
This was further expanded in February 2020 when Instamojo made its first acquisition by buying GetMeAShop, a digital commerce platform.
This acquisition was a strategic move to strengthen its position in the e-commerce industry, allowing Instamojo to offer a broader range of services to its customers, including website building, marketing tools, and CRM solutions.
While Instamojo faced a regulatory challenge with the RBI leading to the closure of its core payments business, the company remains active and is diversifying its offerings to adapt to the changing business environment.
Their partnership with Nova Registry and the acquisition of GetMeAShop are examples of their strategic moves to remain relevant and continue serving their customer base effectively.