Paytm’s parent firm, One97 Communications is in the midst of raising $300-500 million in an endeavor to enhance itsonlineto-offline (O2O) retail business. The company also intends to get customers use the Paytm platform for making payments. Renu Satti who had been helming the Paytm’s Payments Bank has been relieved of her current role and will become the new COO at New Retail vertical.
Paytm who is banking on Softbank, its existing shareholder and some US based investors for the funding. The investors are likely to value Paytm at about $ 10 billion.
The resultant funds would be used for the hyperlocal O2O business, which intends to garner footfalls for offline stores via deals and discounts through Paytm’s app. Customers would make payments by QR code in such stores which would increase transactions numbers for Paytm. Merchants for now will have to shell out fee for logistics and marketing costs instead of a commission. Paytm Mall’s O2O model retails food, groceries and medicines whereas Paytm Mall’s O2O model is based on collaborations with brand stores for ensuring deliveries.
Source : economictimes.indiatimes.com