Update: Paytm e-grocery app called Paytm Zip is now available on Google Play Store. It is functional in Bangalore in the following areas: Bellandur, Iblur, Sarjapur, Kadubeesanahalli, Marathalli and Kundalahalli. The company claims that the order can be edited (add or change) on the fly and that it manages the delivery and payment of the store on the user’s behalf. As of now, the app seems available only on the Google Play Store since a search for it on the Apple App Store did not return any results.
Earlier (April 20): Paytm’s parent company One97 Communications is reportedly getting into the e-grocery segment with a new app called Zip which will connect local offline and online grocers, reports Business Standard. A beta version of the Zip app will be launched later today.
— Paytm (@Paytm) April 20, 2015
Bangalore first, then Delhi
The new business vertical will be headquartered in Bangalore. One97 will use the freshly received funds from Alibaba to venture into grocery retailing. Once the Bangalore pilot gives the company an idea of the scale, it will expand to Delhi in a month, VCCircle reported. The Zip app will function as an affiliate cum payment system and the company is in talks with grocery e-commerce players for partnerships.
The grocery segment will initially be a team of 20 and begin operations “soon”. Founder and CEO of One97 Communications Vijay Shekhar Sharma told Business Standard that they’d been working on this for the last 4-5 months and the beta of the Zip app is underway.
50 million wallet users on Paytm
Paytm, which recently touched the wallet user base of 50 million, claims to process over 60 million transactions per month. Out of the 50 million user base, Paytm claims to have 16 million users who are active on a monthly basis. Through its massive funding via Alibaba, which reportedly picked up a 30% stake at $575 million, Paytm was planning to use the funds to grow its mobile payment ecosystem and commerce user base acquisition.
An Economic Times report mentioned that Paytm would also be investing on a platform to aggregate courier companies to offer nationwide delivery services and for hiring new employees. That could still be in the pipeline along with Zip. A Mint report stated that Paytm was in talks with autorickshaw and cab drivers to adopt their wallet for payment methods.
E-grocery segment exploding
Recently, the e-grocery segment in India has been witnessing massive growth with competition heating up. Each player is expanding across cities in India going head-to-head: while Flipkart is reportedly considering getting into e-grocery delivery, Amazon has already started KiranaNow to deliver in Bangalore. For all the dope on the buzz in this segment, click here.
Image Credit: Flickr user Janine