Today, the e-commerce ecosystem of India is welcoming another major player to join its ranks. Alibaba-backed Paytm is finally ready to take on the big boys of e-commerce with the official release of its spin-off e-commerce marketplace called ‘Paytm Mall’. Something which has been in works for several months has taken form — through a separate web platform and mobile app.
Falling in line with speculations, Paytm’s new e-commerce entity has been named Paytm Mall (and includes a section called Bazaar to provide you access to local and international products). The said name is inspired by Chinese e-commerce giant Alibaba’s business-to-consumer (B2C) marketplace TMall, whose model focuses on streamlined categories and brand-authorised stores. It also lays a major focus on electronics, fashion, FMCG products and supporting SMEs.
Talking about the launch in an official statement, Saurabh Vashishtha, Vice President of Paytm says,
Paytm Mall will focus on structured categories and brand authorized stores. It will also focus on electronics, top fashion brands and FMCG products. We will also focus on fashion, home furnishing and SMEs with key focus on small sellers looking to leverage mobile commerce to enhance their business.
Though Paytm’s marketplace business already had an annualized gross merchandise value (GMV) of nearly $1 billion, this new avatar and identity will enable it to further its growth. This paves the path for Alibaba’s entry into the e-commerce space, who’s earlier plans involved entering the market through its own TMall business. But, the company has seen potential and an opportunity in Paytm Mall and is now ready to take on the likes of homegrown Flipkart and American giant Amazon.
Building upon its three-year-old business, Paytm Mall is starting off by providing customers the choice of 68 million products across multiple categories such as electronics, consumer durables, fashion, and others. It has partnered with about 140,000 sellers and also set up 17 fulfillment centres with them. Third-party warehouse providers and sellers will leverage the network of 40 courier partners to carry out Paytm Mall deliveries.
Further, the e-commerce platform plans on making the push for digital transactions. It will only support debit or credit cards, UPI as well as its own digital wallet. There will be an absence of cash on delivery option, though it is the most used alternative in the country. And as expected, Paytm Mall will also try to court users by offering cashback discounts through its wallet. Talking about the platform, Saurabh goes on to add,
We have defined quality criteria for sellers and are building strict controls over warehousing and shipping for products sold on Paytm Mall. Consumers would continue to get the largest assortment of domestic and international products through Paytm Bazaar, which will also be featured on the new app.
The formation and launch of this separate e-commerce marketplace also led Paytm to re-assignment of some key management roles. Two prominent Vice Presidents, Amit Bagaria and Saurabh Vashishtha, have now been assigned the responsibility of the e-commerce business, whereas Sudhanshu Gupta, the head of its erstwhile e-commerce business has now joined the digital payments operations at the company.
Paytm E-commerce Pvt Ltd, which we’ll now be calling Paytm Mall, is flush with capital and is now looking to raise an additional $200 million from Alibaba, of course. This investment round will value the retailer at about $1 billion, while also handing over a massive 50 percent to the Chinese e-commerce giant and its affiliate Ant Financial. The said giants have already invested a hefty capital in Paytm, and hold over 40 percent stake in it. Other investors in the digital payments major includes SAIF Partners and founder Vijay Shekhar Sharma among others.
