Paytm plans to achieve Rs. 2,000 Cr revenue in 2014, launches mobile-based marketplace
Noida-based online recharge major Paytm has introduced a new shopping app with a concept to bargain for a deal before you buy. The app enables shoppers in categories spanning across fashion and home furnishing along with mobile and DTH recharge options.
It features more than 100,000 items from 250 merchants, including Zovi, Myntra, Yebhi and Yepme among others. At present, the app is available on iTunes and slated to launch on Android in a week’s time. The new app will provide real ‘over the counter’ human shopping experience using a text messenger powered by Plustxt. Paytm had acquired Plustxt last year.
“We have thought of mobile shopping from bottom up without any previous assumptions of consumer behavior. Bargain isingrained in nearly every Indian and is part of our everyday shopping experience. We are making something that will appeal to every Indian user in a natural way,” said Vijay Shekhar Sharma, founder and CEO, Paytm.
The app also integrated with recently rolled-out Paytm cash wallet through which shoppers can store cash to shop faster on the go. The feature was incorporated after Paytm earned Reserve Bank of India’s nod to launch a semi-closed wallet.
“We need a very reliable and easy way to use payment system for mobile. None of the traditional systems were built for mobile so we made Paytm Cash. It is a game-changing product made for mobile payments,” said Vijay.
As per Paytm estimates, there are about 60 million smartphone users in India out of which Paytm will have over six million monthly users by end of this month.
The company has crossed Rs.1,000 crore in the current fiscal and plans to achieve Rs. 2,000 crore by the end of this year. “We’re doing transactions worth close to three crore daily,” adds Vijay.On a monthly basis, Paytm has been doing around seven million transactions and it’s confident enough to enable a million transactions on a daily basis sometime in 2015.
Paytm has played a big card through the marketplace approach when major chunk of e-commerce players, including Flipkart, consider mobile as the next big opportunity. Mobile will eat up (desktop) online internet and will surpass its user base in a few years.
Considering India is a mobile first country, Paytm’s decision to launch mobile only marketplace is a well timed initiative. Though what needs to be seen is how e-commerce players will face up to the challenge after Paytm’s move?