Paytm has launched a new e-commerce website and app called Paytm Mall. Note parent company One97 Communications is demerging its e-commerce business from its wallet business. The wallet business was moved to the payments bank company in December.
The Economic Times points out that the marketplace has 1.4 lakh sellers with over 68-million products across categories like fashion, electronics, consumer durables and home furnishings among others. The e-commerce website will be fashioned along the lines of Alibaba’s TMall with a focus on structured categories and brand-authorised stores. Note that the Mall has an “Assured by Paytm Partner” filter option. This will help in finding brand-authorized stores.
The newly created e-commerce portal also has Paytm Bazaar, an unstructured shopping channel on Paytm, that provides shoppers a range of domestic and international goods.
The website will use debit/credit cards, net banking, wallet and UPI as modes of payment.
In June 2016, Paytm said it was receiving 2 million e-commerce orders monthly and was expecting to grow to 5 million orders by March 2017. At the time, it claimed a GMV of Rs 20,000 crore, of which 40% came from the e-commerce marketplace.
Note that the firm has partnered with Flipkart’s eKart for logistics support. The company also has already tied up with Delhivery, GoJavas, Blue Dart and many other domestic and national logistics providers
E-commerce marketplace used to grow payments business
Back in May 2016, CEO Vijay Shekhar Sharma, told the Economic Times that its marketplace was a byproduct of the payments business for the company. Sharma said that while other marketplaces used cash on delivery as a top feature, the company wanted to grow its payments system. He added that Paytm would ‘always be a platform for SMEs (small and medium enterprises) to use Paytm payments and financial services.’
It is now concentrating its efforts to onboard offline merchants and it recently said that it would be spending Rs 600 crore for the same. It currently has 5 million merchants and wants to hit 10 million merchants by the year end in over 650 districts.