The ecommerce battle in India is hotting up, with Flipkart, Amazon and many other companies competing for more market share for their respective platforms. Now, Paytm Mall is making significant moves to try and be one of the top players in Indian ecommerce.
Just a week ago , Paytm Mall promised a $5 million investment to help onboard new offline sellers. Now, it has announced that will be investing $35 million into its logistics network which will go towards bolstering its infrastructure and core technologies of the ecommerce platform and help to grow the company and its market share in India.
What Is Paytm Mall?
Paytm are one of the world’s most recent ecommerce companies and its Paytm Mall is a consumer shopping marketplace that is modelled after China’s TMall, their largest business-to-consumer (B2C) platform. The company’s name is an acronym for Pay Through Mobile and it employs over 13,000 employees with 3 million offline merchants across India. Paytm is the first ever company to receive funding from the Chinese ecommerce giants Alibaba and they are their largest stakeholder.
The investment in logistics comes as part of the company’s mission to help speed up deliveries by working with local suppliers to provide same-day and next-day deliveries in appliances and electronics categories across 25 cities in India. Paytm Mall does not have a dedicated logistics division like some of its rivals do. Flipkart has Ekart which employs 20,000 people and Amazon has their own Amazon Transport Services in which it has invested in significantly over recent years. In the past few months, because Paytm Mall has to rely on third party companies for logistics, there have been some problem with customers complaining about delays, which has led them to de-listing six of its 14 providers and now deciding to invest in their own logistics operations.
Amit Sinha, chief operating officer, Paytm Mall says:
“We aim to build a trusted and highly efficient logistics network to enable our partnered retailers to offer same-day and next-day deliveries. This will help local shopkeepers offer a more convenient shopping experience and enable brands to save up to 50% on logistics, as they will be able to bypass inter-city logistics costs.”
The investment comes at a time that Paytm, which is currently the second most valued startup ever in India wants to be counted as one of the country’s top three ecommerce operations. Flipkart is number one, with Amazon a close second and Paytm wants to secure third place by expanding into categories such as automobiles and groceries. Recent news reports have also gone as far to suggest that the company is planning on selling products in China.