Paytm Mall is planning to take the fight to the opposition, particularly the leaders Amazon and Flipkart in the Indian ecommerce space. The company is looking to forge partnerships across the spectrum, offline supermarkets, online grocery and food startup BigBasket and a large number of retail establishments around the country with a view to expand its reach and make its business broad based.
Among the notable tie-ups, there is the association with BigBasket where the app will be integrated within the Paytm Mall, which means you can order your groceries and vegetables and fruits while visiting Paytm Mall and make the payment.
Similarly, Paytm Mall has entered into an agreement with the supermarket chain Future Retail. Big Bazaar stores are all over the country and whatever rub-off Paytm Mall gains from these associations should prove to be formidable. Even otherwise, the trend in the market is towards having the omnichannel model where you are present in online and offline channels. The local partnerships with retail stores are aimed at solving the last mile delivery issues, particularly in un-serviced PIN code locations. The agreement with Big Bazaar envisages a revenue sharing model as well.
The partnership with BigBasket is driven by the influential common investor in both the companies, Alibaba of China. Paytm Mall has also declared that it is open to making strategic investments in firms which can add value and offer stakes in Paytm Mall to deserving investors from the trade.
Paytm Mall is conscientiously trying to position itself as occupying the third slot for now, so far as the Indian ecommerce segment is concerned, which is sprinting towards the $200 billion business in the foreseeable future. This is after Amazon and Flipkart (now, Walmart-owned), not necessarily in that order.
The spokesperson for Paytm has clarified that there is no plan for Alibaba to play a more direct role in their operations and will remain investors.
Having raised $650 million so far and having investors like Japan’s SoftBank and Saif Partners besides Alibaba, cash is at least no problem for Paytm Mall in whatever steps it takes to shore up its business.