Paytm Mall expects to reach break even in a year
today Oct 15, 2019
Digital payments business Paytm’s multi-brand e-commerce site Paytm Mall expects to reach break even in the coming year and could pursue a stock exchange listing after 2021.
"Paytm Mall business is close to break-even, $3 million [Rs 19.96 crore] EBIDTA [earnings before interest, depreciation, taxation, and amortisation] loss a month, and $1.2-1.3 billion run rate,” Paytm’s founder Vijay Shekhar Sharma told the Press Trust of India at the India Mobile Congress 2019. “In a day, we do 275,000-300,000 orders a day. In festive season, this peaks to half a million orders a day, double of the average day."
"We have money in the bank, we have $260 million, so I would say that we can give more growth capital to it, so basically after a year, Paytm Mall would break even for sure," said Sharma. The business plans to only seek an initial public offering when it has stated to generate cash.
Paytm Mall counts SoftBank Investment Holdings and Alibaba as investors and retails an array of fashion, accessories, lifestyle, and electronics goods online. The US-owned e-commerce business eBay also bought a 5.59% stake in Paytm Mall for $160 million. Following Paytm Mall’s funding round with SoftBank last year, the business reached a valuation of $2 billion.
Copyright © 2020 FashionNetwork.com All rights reserved.