Instamojo Sees 20% Jump in Gross Profit, Acquires 1,500 Merchants Daily With No Advertising in April 2020 Amid Lockdown

Bengaluru, May 7: Amid the coronavirus pandemic and the lockdown, several start-ups are winding their operations as they finding it difficult to sustain the turbulent times. However, there are some like Instamojo, who are also seeing growth during this time.  Sampad Swain, Co-founder & CEO of Instamojo announced that the company has clocked a growth in gross profit in April, which is 20 percent higher than the previous month.

Instamojo, allows merchants and business to sell products through the web and accept digital payments. In April, the gross margin was recorded at 57 percent, which is a significant jump in comparison to December 2019, when it was around 37 percent. Curefit Lays Off Several Employees, Slashes Salaries, Shuts Cult Centres in Small Towns in India & UAE Due to COVID-19 Pandemic.

Here's what Sampad Swain tweeted about his company's performance:

The other positive developments tweeted by the co-founder is that Instamojo saw this performance as a time when the company also reduced its net burn by 50 percent in April. Notably, it was the lowest burn ever for the company in a month.

Inspite of the lockdown, the company has still managed to acquire 1,500 merchants on a daily basis with zero advertising budget. He said that the mode of acquisition was digital-only and the activation rate has grown by 100 percent in comparison to the pre-lockdown phase.

At a time, when the other companies are reducing their workforce, sending their employees on furlough and deducting salaries of their employees, the good performance of Instamojo will boost the confidence of startups.

(The above story first appeared on LatestLY on May 07, 2020 02:26 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).