Paytm has acqui-hired Shopsity, a Delhi based startup which offered online to offline solutions for retail stores, and will integrate Shopsity’s technology and offer additional solutions to its offline merchants. Paytm currently claims to have 800,000 offline sellers on its platform.
Shopsity was founded by Danish Ahmed, who previously co-founded Yebhi and quit it to launch Shopsity in May last year. At launch, the company provided information on fashion products being sold in the users’ vicinity through an app. In July last year, Shopsity raised an undisclosed amount in a round of seed funding from Sandeep Aggarwal and Teruhide Sato.
Offline driving transactions
In August, Paytm’s offline merchant transactions exceeded online transactions on the platform, CEO Vijay Shekhar Sharma (VSS) told MediaNama. About challenges in going offline, Sharma said, “So, it was three layers of new things: One for the consumer, it was new because they have never gone in the offline world and paid in any online payment instrument. We had to help with consumer mindset. Second is towards the merchant who are okay with cash and have no obligation to build a non-cash business. The third was that we had chosen a new technology, where the consumer and the merchant had to learn.. The point is that this is tokenization for your digital wallet.”
In July, Paytm started accepting payments at retail chains like Spencer’s Retail, Heritage Fresh, More, WH Smith, Kendriya Bhandar, V2 Retail, Value Plus and Pai International (Pai Mobile). This followed its tie-up with quick-service-restaurants such as KFC, Pizza Hut, Cafe Coffee Day, Costa Coffee, Barista, Vaango, among others. Paytm claims to have 125 million wallets.
Paytm’s recent acquisitions and acqui-hires
In September, Paytm acqui-hired EduKart, an e-learning marketplace for an undisclosed amount. In January this year, Paytm acquired Shifu, a consumer behavior prediction platform for an undisclosed amount. A month before that, the company acquired Gurgaon-based services marketplace Near.in for $2 million.