Startups for SMEs
By 2025 there will be 2.6 crore small and medium enterprises
By 2025 there will be 2.6 crore small and medium enterprises
New technology has harmed small merchants the most. Online catalogues, discounts and fast delivery makes people prefer e-commerce brands over small merchants. Without the strong micro, small, medium enterprise sector, Indian can not become $ 5tn economy. Startups such as Instamojo can help fight back.
As per Fortune Instamojo is an all in one payment, e-commerce and landing platform for small businesses. 10 lakh merchants use its product and services. Most of its users are solopreneurs from tier two and their three towns. A typical merchant on Instamojo does a business of INR 15 lakhs per pear. It started micro-lending to small businesses. Each loan is about INR 12000 for a period of three days.
Sampad Swain is founder of Instamojo. He says, “ We realised that we can build this entire string where these merchants can start, manage, and grow — where they can actually do a lot more by doing a lot less. Technology has to be brought down to the level of consumerism used for business purposes. That’s the key gap we are looking to fill.”
More startups are focussing on SMEs. Vyapar offers digital accounting solutions for SMEs. OK Credit offers digital-based credit balance recording solution for small business owners. Khatabook records business transactions. Marg ERP offers custom inventory and accounting solutions. Paymate helps in business payments. Expect more startups as MSMEs will contribute about 50% to India’s GDP.