Paytm’s quest to turn into a one-stop financial resource cum shopping destination online is taking another turn with the company planning to launch an all new division called New Retail and this model will have a separate COO. The digital payments major is also looking to raise funds for this new division.
The New Retail model is explained as one in which the offline retailers would go beyond just accepting payments for purchases made in their outlets through the Paytm channel but do marketing and deliveries and so on. Paytm will equip them with all the physical tools to execute these tasks in addition to providing the training needed to do so.
The details of retail networks which include grocery outlets, pharmacies and others will be reflected inside the Paytm app and will be based on the phone user’s location. Customers can then place orders and have the products delivered at their doorstep.
The logistical capabilities required to handle the last mile activity will be created by Paytm and the transactions monitored and controlled through the use of technology. Paytm has identified Renu Satti , who previously headed Paytm Payments Bank as the COO of this New Retail Model.
The existing network of merchant establishments that Paytm has, in different business segments, will be roped into the new initiative and the necessary backup provided. These could be the local general stores, medical stores and even restaurants. Some of the players in the food and grocery business at the national level could also become partners with Paytm in this model.
Paytm is already present areas like ticket bookings, entertainment, online shopping and lending and insurance. The company says it has touched a gross transaction value or GTV, on its site, of $50 billion on the gross run rate of 5 billion transactions per year. The new model will pit Paytm directly against several competitors at once. Some of them, such as BigBasket, Grofers, Godrej Nature’s Basket and DailyNinja are in the food and grocery space and in the pharmacy trade, there are startups like Medlife, 1mg and Netmeds.