Mastercard and Times Internet-supported Instamojo, which recently ceased its primary payment operations, revealed a consistent operational revenue of Rs 46 crore in FY23. The company faced attention last month for discontinuing its payment services following the rejection of its license application by the Reserve Bank of India. Originating as a fintech startup specializing in providing payment solutions to businesses, Instamojo rebranded itself as a direct-to-consumer (D2C) tech platform two to three years ago, currently offering digital tools for SMBs and D2C enterprises to establish their online stores. While it continues to offer payment services, including online gateways, to its merchant clients, the company has shifted its focus.
Since the transition, Instamojo has reported consistent month-on-month profitability, unlike its previous revenue model centered on standalone payment gateway services. The company’s operational revenue remained almost unchanged at Rs 46.2 crore, with Rs 7 crore generated from IT services and Rs 38 crore from an unspecified ‘revenue account.’ Even though other income witnessed a slight reduction, totaling Rs 46.2 crore, it fell marginally short of the previous financial year’s earnings.
Instamojo managed to curtail its total expenses from Rs 48 crore to Rs 38.12 crore. The decrease in employee benefit expenses, including salaries and provident fund, amounted to Rs 4 crore, while other expenses, encompassing marketing, managerial remuneration, and legal fees, dropped to Rs 23.14 crore from Rs 28.6 crore.
The company currently provides payment solutions through partnerships, transitioning its merchants’ payment accounts to licensed partners. Despite this shift, Instamojo assured the functionality of its gateway business, operating seamlessly in collaboration with other licensed payment aggregators. Additionally, discussions about potential fresh funding have surfaced, aiming to facilitate exits for some early investors, as mentioned in a report by VC Circle in July.
