While the e-commerce race was largely dominated by likes of Flipkart and Snapdeal, Paytm has caught up rapidly with them. With its mobile first approach the Noida based company is posing great threat to aforementioned unicorns including Amazon, Shopclues etc. These companies believe that their growth will be driven by devices on the go and formulating strategies to tap consumers on mobile. However, with its mobile only approach and wallet adoption Paytm seems to be taking a leap over them.
Currently, the company claims to have Rs 10,000 crore GMV runrate and aims to scale it to 1,00,000 crore GMV by 2020 (read YourStory’s interesting take on vanity metrics).
Paytm had launched wallet and marketplace in January and February last year. On wallet front it has 80 per cent of overall marketshare and claims to surpass magical figure of 100 million users two months back. On marketplace side, the Alibaba funded company had onboarded 50K sellers and claims to process 75 million transactions (recharge +marketplace) on a monthly basis.
Unlike all e-commerce companies, Paytm don’t offer Cash on Delivery (COD) option. Over 90 per cent of overall transaction are pure-play online transaction as consumers pay via wallet, credit or debit card. The company had cracked significant number of partnership for its wallet and rolled out zero commission marketplace model that let sellers not to pay commission (Paytm only charges payment processing fee) on sales.
Other marketplaces like Flipkart, Snapdeal, Amazon and Shopclues work on a commission based model. This year Paytm is also splurging on branding and clinched $32 million deal with BCCI for sponsoring international and domestic bilateral series hosted by the cricket board over the next four years. It had announced Rs 500 crore marketing budget for 2015. Paytm also got license for payment bank from apex banking body RBI.
Through below infographic we are trying to capture major milestones in Paytm journey:
(With design inputs from Aditya Pahuja & Praveen Hegde)