Indian electronic company Paytm is planning to raise a total sum of 3000-4000 crore in its new round of funding by the end of this year for which it is in talks with financial investors from Asia and the US.
Paytm Tries to Invest in Indian E-Commerce Space
Paytm, in which Alibaba and Ant Financial own majority stake, has ambitious growth targets as it is struggling for a third place in the market dominated by Amazon and Flipkart. Alibaba and Paytm Mall have been exploring forcefully for acquisitions and vital interests in the Indian web-based business space. They could likewise put resources into coordination.
Paytm Mall Targets Sales of Rs 3,200 crore
Paytm mall has lined up Rs 1,000 crore to spend on marketing, cash back and promotions during September-October. It has targeted sales of Rs 3,200 crore during the festive season and a gross merchandise volume (GMV) run rate by end of the year.
“The attempt is to become a credible marketplace after Flipkart and Amazon India. That’s what their strategy is around,” said Anup Jain, founder, retail consulting firm Redback Advisory Services.
Paytm’s O2O model & Wallet effect
Analysts believe that Paytm Mall’s O2O (the online-to-offline model) gives them an edge in the business, as can be seen amid the current happy deals. “Some of its categories that have done well are appliances because of high cash back offers and also because of its O2O model.” Said above analysts. Another edge for Paytm is its wallet, which has become quite pervasive during demonetization.