instantPay, a digital payments and financial services startup, has today announced that it has raised funding through its pre-Series A round. While the exact amount raised is not disclosed, it revealed that the amount is in the range of $3-5 million.
In this current round, funding comes from Singapore-based investors RB Investments and Kaleden Holdings. With new capital coming in, the money raised will be used for the development of new products and geographical expansion across the country. The company will also spend money to build the brand and for marketing.
Sankalp Shangari, cofounder of instantPay, said that they are also enabling other products and services to be delivered via their distribution directly and efficiently. Gurinder Singh, managing director at Kaleden Holdings, said that “it is rare to find a small company that has remained cash positive in this industry”.
The Delhi-based startup has more than 100 products and services and facilitates digital payments at kirana stores in tier-2 and 3 cities. It offers services including electronic mobile recharges, utility bill payments, insurance premium payments, travel bookings, domestic remittance, etc.
The company’s products and services are distributed through more than 400 corporate strategic alliances and via nationwide network of micro merchants. The platform currently has over 62,000 merchants and targets to cross 1,20,000 merchants by March 2017.
instantPay claims to be processing around 10 million transactions per month at the moment. But is looking to touch the 50 million mark by FY18. It also claims to be profitable having closed FY16 “net positive in a few lakh”. The startup is aiming at 20% growth for FY17 with a four-fold jump in revenue for FY18.
According to the investors, the key challenge for companies in this space in the upcoming year would be to mitigate cyber security risks following a surge in business due to demonetisation.