Paytm Mall to join Hands with Big Basket to take on Flipkart & Amazon. Read the entire article to know more about it.
Paytm, an Indian E-commerce and E-wallet company was established in Noida in 2010. Founded by Vijay Shekhar Sharma, it has become India’s Top e-wallet company is a very short span of time. The company is valued at a whopping $8 billion USD! Paytm has been on an acquisition spree and has been acquiring a lot of firms lately. In the time period between September 2016 to August 2018, Paytm has acquired 11 firms and is still looking to do the same.
Paytm has their roots in many other fields as well, right from Paytm Payments Bank to Paytm Mall. The Paytm Mall is an online shopping site where one can shop for goods and products on the internet, just like other e-commerce sites. They have a good collection of products and they also offer really good discounts on their products.
However, Paytm has been trying to strengthen their bonds with the local retailers to strengthen their hold and position against their present leaders – Amazon and Flipkart. Because of being in the third place in the Indian e-commerce market, Paytm is now planning to join hands with the online grocery shopping platform – BigBasket. Both Paytm Mall and Big Basket are backed by the biggest group of China and the world, Alibaba Group.
During an interview, Amit Sinha, the COO of Paytm Mall stated that they have plans to integrate Big Basket on their app. Paytm owned e-tailer Paytm Mall already has a revenue partnership with Future Retail. Future Retail operates and manages the hypermarket chain Big Bazaar and various other fashion outlets.
Sinha also added that “When we talk about partnerships there will be brand partnerships, there will be retail partnerships – and not only with pan-India retail chains like Big Bazaar but also with regional, local city-based brands.”
Paytm Mall can also think about buying stakes of another retailer or is selling its own stake if there arises a need to form a strategic partnership, said Sinha. However, he did not make a single comment on the plans of Paytm to buy the minority stake in Future Retail along with Google. Recently, there have also been reports which have suggested that Google has plans to team up with Paytm’s e-tailer for taking up a 7-10% stake in Future Retail for Rs 3,500 to Rs 4,000 crore. One more unidentified private equity fund is expected to be a part of this consortium. As per Sinha, Paytm Mall sees themselves as a very strong competitor in the growing e-commerce market of India. They are the third largest in India after Walmart owned Flipkart and
Amazon India. Sinha said, “At least there are three players who are definitely, very clearly there (in the long run) – Amazon, Flipkart and us.”
Paytm e-commerce, which is the parent company of Paytm Mall raised roughly about $650 million. However, the company as of 2017, is valued at over $8 billion USD. The biggest shareholders of the company are Vijay Shekhar Sharma, SoftBank, Saif Partners. However, the biggest investor of the firm is the Alibaba Group.
What we feel
Paytm Mall has made a really good strategy of teaming up with Big Basket to compete in the market. Their competition is with e-commerce giants like Amazon and Flipkart. They would want a lot more products and exciting offers to compete with their competitors. Surpassing Amazon and Flipkart is a major challenge for the company due to the former’s high goodwill and customer base in the Indian market. But, if the Paytm is able to do it, it will be a very huge success for the firm.
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