Paytm India’s ecommerce arm Paytm Mall, is planning to invest $ 35 million in its technology and logistics infrastructure to strengthen their logistics network. The company will also be adding more product offerings to further strengthen its position in the market ahead of the crucial festive season.
Amit Sinha, the COO of Paytm Mall said they are investing in technology and infrastructure expansion of their logistics network to make sure there is a seamless process for a consumer to place an order and receive deliveries in a day. “This is being rolled out in about 25 cities but plans are afoot to quickly take it to other pin codes,” he added. The Alibaba backed company also said it plans to cut down on its delivery timelines for partner merchants and has partnered with three large logistics players Delhivery, Blue Dart and Xpressbees along with specialized local couriers such as Shadowfax and Book a Wheel to expand its delivery reach.
The company is also partnering with local delivery players in a bid to ensure same day and next day deliveries and expand the delivery reach to about 17,000 pin codes. The company recently delisted 50% of their logistics partners and 30 courier aggregation centers in an attempt to revamp their seller on boarding process.
The ecommerce arm of Paytm Mall was launched in 2017 and competes against giants like Flipkart and Amazon. The platform also seeks to go deeper into smaller cities and scale up their partner network with 3000 new agents to compete against Amazon, who recently passed a special resolution to infuse over Rs. 400 crores in their logistics arm in the wake of festive season sales.
In June, the ecommerce arm Paytm ECommerce Pvt., Ltd., raised $200 million in a funding round from Alibaba and venture capital firm SAIF Partners. The company also announced to invest $ 5 million in their Shopkeeper Inclusion Programme to address the needs of its partners.
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