Paytm Mall attributes doubled revenue in FY19 to O2O business model

By

Isabelle Crossley

Published
Jul 9, 2019

Paytm Mall has attributed its revenue doubling in the 2019 financial year compared to the year before to its offline to online business model and the business aims to increase revenue by three times this financial year.

Paytm Mall’s large revenue increase was thanks to its offline to online business model, the business said in a statement on Monday. The business also said it reduced costs by 50 percent during the 2019 financial year.

"We have incredibly turned around our business model using O2O,” Paytm Mall’s senior vice president Srinivas Mothey told Indo-Asian News Service. “Our multi-pronged strategy has resulted in exciting results for us. Now, every order that we ship is profitable and will become EBITDA [earnings before interest, tax, depreciation, and amortisation] positive by FY22.”

The business previously used a warehouse model for distribution but has moved to an offline to online model as it believes this is the way to cut costs. Paytm Mall focuses on fashion and electronics products and also retails homeware and other lifestyle items.

"We will continue to invest in the business for profitable expansion and not for unreasonable discounts,” said Mothey. “This fiscal year, we are focused on increasing our revenue three times, while reducing the cost by another 60 percent."