Paytm Mall gleans a fifth of festive sales led by O2O model

By

Isabelle Crossley

Published
Oct 23, 2017

Launched as a separate platform only six months ago, Paytm’s Paytm Mall announced that it took around 20 percent of total market sales this festive season and credits its new online to offline (O2O) model for the high sales.

Paytm Mall also announced that it has already met its target for March 2018 of achieving an annual gross merchandise value (GMV) run rate of four billion dollars, helped by sales from the festive season.

The e-commerce site has recently been promoting an online to offline model that uses QR codes in brick and mortar stores. The comapny has credited 40 percent of their total festive season sales to the model, which they plan to keep focusing on for the future.

Amit Sinha, Paytm Mall’s Chief Operating Officer, said of the future of their new business model: “Our O2O model will lead to a month-on-month increase in retailers on board, thereby causing an increase in acquisition of customers.” Sinha also commented that the platform does not fear the usual post- festive season sales dip as many of their products see repeat purchases.

Some analysts have questioned Paytm Mall’s sales figures, arguing that, as Flipkart and Amazon took 80 percent of the festive sales, Paytm Mall’s share is likely lower. It has also been remarked that it was mostly products with attractive cashback offers that sold and so, whist sales figures were high, profit margins may not be. Despite the scepticism, Paytm Mall is fast rising through the e-commerce ranks after its launch six months ago.