With an aim to expand its share in India’s growing online retail market, Paytm Mall targets a three-fold increase in its annualised gross sales, taking it up to $10 bn-mark by March 2019. Owned by Paytm E-commerce Pvt Ltd., Paytm Mall has ramped-up its efforts to expand the business. Amit Sinha, COO – Paytm Mall, said the company is building an O2O model offering same day deliveries to top 15 cities which will soon be expanded to another 25 cities across the country.
“We are excited to witness the growth of the Indian retail market and we have ramped up our efforts to expand our business to meet its ever-growing demands. We are building an O2O model offering same day deliveries to top 15 cities and will be further expanding our services to 25 cities across the country. Our partnership with brands/merchants and their offline retail stores is driving an important opportunity for them to increase their business while building engagement with their customers,” Sinha said.
The company had achieved $3.5 billion in annualised gross sales in June 2018 which made it a strong number three contender in the local e-commerce market within a year of its launch. It also aims the unit orders to jump to 1-1.5 million orders per day, from about 625,000 currently.
The company has raised $650 million since its inception in April 2017 – with the latest round of funding ($450 mn) coming from Japan’s Softbank Group. Paytm Mall is currently valued at about $2 billion and the shareholders include Alibaba Group, Ant Financial, SAIF Partners and founder Vijay Shekhar Sharma.
Paytm Mall plans to create differentiation in the market by not having an inventory-led business model. Instead, it aims to promote the O2O (offline to online) model in India.
Paytm Mall’s O2O operating model is aiming to leverage India’s 15 million offline retail shops to participate in India’s e-commerce boom. The company currently works with offline stores in partnership with brands such as Samsung, LG, Lenovo, Intel, Red Tape, Canon, HP, Godrej, and Hitachi.
