Paytm Mall registers $3.5 b in gross sales in June

Paytm Mall, owned by Paytm E-commerce Pvt Ltd which runs the online marketplace, achieved $3.5 billion in annualised gross sales in June 2018.

This robust performance has made the Paytm Mall a strong number 3 contender in the local ecommerce market within a year of its launch. By March’19, Paytm Mall expects unit orders to jump to 1 to 1.5 million orders per day, from about 625,000 currently.

Commenting on the development, Paytm Mall COO Amit Sinha said the company is excited to witness the growth of the Indian retail market and ramped up efforts to expand business to meet its ever-growing demands.

"We are building an O2O model offering same day deliveries to top 15 cities and will be further expanding our services to 25 cities across the country. Our partnership with brands/merchants and their offline retail stores is driving an important opportunity for them to increase their business while building engagement with their customers," said Sinha.

Paytm Mall has raised about $650 million since its inception in April 2017. During its latest fundraise, the company raised about $450 million from Japan’s Softbank Group, and it is currently valued at about $2 billion. Shareholders in Paytm E-Commerce include Alibaba Group, Ant Financial, SAIF Partners and founder Vijay Shekhar Sharma.

With the aim to garner a bigger slice of India’s growing online retail market, Paytm Mall is aiming for a three-fold rise in annualised gross sales and is set to achieve the $10 billion mark by March 2019.

For Paytm Mall, the largest categories by value include appliances, laptops, and mobiles with the daily needs category generating the maximum number of orders.

The company plans to expand its fashion and home business this year. Paytm Mall plans to create differentiation in the market by not having an inventory-led business model. Instead, it aims to promote the O2O (offline to online) model in India.

It currently offers same-day delivery and O2O deliveries in the top 15 cities including New Delhi, Mumbai, Bengaluru, Chennai and Hyderabad. The company plans to further expand its services to 25 cities including Kota, Jabalpur, Dehradun, and Indore, among others by Diwali.

Paytm Mall’s O2O operating model is aiming to leverage India’s 15 million offline retail shops to participate in India’s ecommerce boom. The company currently works with offline stores in partnership with brands such as Samsung, LG, Lenovo, Intel, Red Tape, Canon, HP, Godrej, and Hitachi.