New Delhi: Paytm Mall reported a loss of Rs13.63 crore in total sales of Rs7.35 crore for the year ended March 31, 2017, according to filings with the Registrar of Companies (RoC). Total expenditure was Rs20 crore, while reserves and surplus stood at Rs1,284 crore, according to the presentations. Paytm Mall (Paytm Electronic Commerce Pvt. Ltd) was carved from parent One97 Communications Pvt. Ltd, which runs the Paytm Payments application, in August last year. He then raised $ 200 million from China’s Alibaba Group (an investor in One97) and SAIF Partners in February.
“These are the initial years for Paytm Mall and we have a long-term perspective on building a successful technology business,” a Paytm Mall spokesman said in an e-mail response to inquiries. “We will help customers receive the same trusted retail experience, synonymous with our brand and act as technology facilitator for the mass online community of the country. We will achieve this with our first O2O model that allows us ensure a seamless experience through offline and online, “said the spokesman.
While the e-commerce business has existed for at least three years under Paytm, it received a fresh breath of life only recently. As of this year, the company has undertaken a series of measures to expand its operations, launching it directly against the market leaders Amazon India and Flipkart. At the outset, Paytm moved 800 employees to Paytm Mall and launched an independent application and website in February. Since then, it has spent substantial resources on marketing and signing vendors on its platform.
Facing the competition, it launched its first festival sales event last month, pledging to spend more than Rs500 crore on cashback offers. Paytm Mall says its strategy is different from market leaders. The platform offers an offline experience to the line, as does China’s TMall, where orders are serviced from local brand stores, offering synergies in logistics and storage. These brands also have their own websites at Paytm Mall for easy access.
Simultaneously, the firm is expanding its QR code capabilities to its network of merchants in an attempt to register small-scale local stores to offer on Paytm Mall. According to RoC documents, Paytm founder Vijay Shekhar Sharma along with chief operations officer Amit Sinha and company secretary Shweta Sapra sit on Paytm Mall’s board of directors. Of the remaining five seats, four are controlled by Alibaba and one by SAIF.