After Flipkart and Amazon, Paytm Mall is planning to become the next biggest e-commerce platform and give the duo some stiff competition. To achieve the goal, One97 Communications-owned Paytm Mall has planned a strategy to forge partnerships with regional retailers and corporates.
Following the strategy, it is set to tie up with BigBasket, which will directly place the platform in the grocery category. The platform is in the process of integrating BigBasket on its app.
The report was also confirmed by Amit Sinha, COO at Paytm Mall. He added that when he talks about partnerships there will be brand partnerships, there will be retail partnerships – and not only with pan-India retail chains like Big Bazaar but also with regional, local city-based brands.
Alibaba is a common investor in both the platforms. In February this year, Alibaba led a $300 million Serie E round in BigBasket.
Existing investors, including Abraaj Group, Sands Capital, and IFC also participated in the round. Alibaba invested $225 million in e-grocer while existing investors such as Abraaj Group, Sands Capital, and IFC poured in rest $75 million in the company.
Paytm Mall already has a revenue-sharing partnership with Future Retail, which owns hypermarket stores like Big Bazaar and fashion shops.
It is targeting an ambitious $10 billion in annualised GMV by the end of this fiscal year.
It focuses on bringing small merchants online. It follows o2o (offline to online) strategy and eyes at unorganised markets across segments including electronic, fashion and FMCG.
Sinha added that the company is also open to buying a stake in another retailer or selling a stake in Paytm Mall if a “strategic alignment” was needed. But, he declined to comment on media reports that said the company was looking to buy a minority stake in Future Retail.
The development comes when grocery has become a hot category and biggies like Flipkart and Amazon are also betting big on the segment.
Amazon has been aggressively pushing grocery from its own inventory. In the last months, Amazon Now’s overall daily shipment climbed to almost double. According to a spokesperson for Amazon said Prime Now’s business has grown by over 250 per cent since last year.
The development was first reported by Reuters.