The funding, which is part of a pre series A round, will be used for the development of new products and geographical expansion across the country. A part of the funding will be used to build the brand and for marketing.
The Delhi-based aggregator has over 100 products and services and facilitates digital payments at kirana stores in tier-2 and 3 cities. It offers services that include electronic mobile recharges, utility bill payments, insurance premium payments, travel bookings, domestic remittance, etc.
These products and services are distributed through over 400 corporate strategic alliances and through a nationwide network of micro merchants. The platform currently has over 62,000 merchants and targets to cross 1,20,000 merchants by March 2017.
“While we build this massive network, we are also enabling other products and services to be delivered via this distribution directly and efficiently,"said Sankalp Shangari, cofounder of instantPay . Profitability and the ability to innovate for smaller geographies are luring investors to throw their weight behind the company . “It is rare to find a small company that has remained cash positive in this industry ,"said Gurinder Singh, managing director at Kaleden Holdings.
instantPay processes around 10 million transactions per month currently and is looking to touch the 50million mark by FY18. The company claims to be profitable having closed FY16 “net positive in a few lakh“. instantPay is targeting a 20% growth for FY17 with a four-fold jump in revenue for FY18.
Investors believe that the key challenge for companies in this space in 2017 would be to mitigate cyber security risks following a surge in business due to demonetisation.
“Companies should target to make unit economics sustainable before taking long bets in the market and aggressively aiming for market share,"said Rajesh Bothra, MD at RB Investments.
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