Paytm Mall reports Rs 13.63 crore losses, aims to be India’s third largest etailer

Online marketplace Paytm Mall has posted a total loss of Rs 13.63 crore (approx $2.1 million) between August 2016 and March 2017 in its quest to become India’s third largest online marketplace.

Paytm Mall- Facebook

Paytm Mall, which was spun off as a separate app earlier this year, logged a total income of Rs 7.34 crore during the same period, the documents showed.

During the period under consideration, the company spent Rs 12.49 crore (approx $1.9 million) towards employee benefits, Rs 0.48 crore on finance costs and 0.47 crore as depreciation and amortisation expenses. Other expenses during the period were at Rs 7.52 crore, according to regulatory filings with the Corporate Affairs Ministry.

Paytm is making heavy capital infusion into its e-commerce platform and over the last few months has become very aggressive in India’s e-commerce market. The company recently spent Rs 501 crore (approx $75 million) on cash backs during its sale event to take on e-commerce giants Flipkart and Amazon.

“Paytm Mall is targeting to become the third largest marketplace in India this Diwali after Flipkart and Amazon. It is looking at overall sale of $4 billion by the year-end. “Our eventual target is to become one of the top two online sites in India,” Amit Sinha, chief operating officer at Paytm Mall, said in a statement.

Paytm Mall is willing to suffer further losses in its aim to achieve the goal and earmarked 1,000 crore rupees (approx $150 million) for promotions and marketing over the next two months to make further inroads into the lucrative online market in India.

Paytm Mall further said that over half a million customers have registered for its 'Diwali Maha Cashback Sale'.

"Our platform will host a vast range of festive offers in partnership with thousands of retailers across India. This will allow us to serve more customers and ensure that our partner retailers are able to drive massive order volume ahead of Diwali," added Sinha.

The online marketplace is also in talks to raise around 3,000 crore rupees (approx $451 million) and 4,000 crore rupees ($601 million) from investors in a new funding round that they aim to close by the end of the year.

Copyright © 2018 All rights reserved.

Fashion - MiscellaneousRetailBusiness