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Paytm Mall Separates Functions From One97 Communictions

Paytm Mall Separates Functions From One97 Communictions 1

Bengaluru: Months after closing a funding round led by US-based ecommerce firm eBay, Paytm Mall has separated all functions from parent entity One97 Communications, a top executive said.

In July, eBay had picked up a 5.5 per cent stake in Paytm Mall for $160 million.

This was firm’s third stake in India’s ecommerce market after buttressing Snapdeal in 2014 and Flipkart in 2017.

Before eBay, Paytm Mall had raised Rs 1,510 crore in June last year, led by Japanese tech investor SoftBank and Chinese internet giant Alibaba, ET reported.

Paytm Mall CFO and Board Member Rudra Dalmia said the company has recently undergone a series of changes in its business strategy and is rebuilding.

“We are rebuilding. The ecommerce arm, which is valued at USD 3.3 billion, has seen significant restructuring, including no common team member across its two businesses,” he said.

In an attempt to generate revenues through advertising, point of sale and marketing, Paytm Mall also has integrated Nearbuy with its app to map neighbourhood offline stores.

Paytm Mall had acquired Nearbuy, a deals platform, in December 2017.

Besides, the company has also tied up with Kishore Biyani’s Future Group, Reliance Industries and BigBasket to boost its offline-to-online (O2O) business.

The firm also has introduced gift cards, launched the eBay international store with curated merchandise for the same purpose.

The firm, valued at $3.3 billion, has reduced its monthly cash burn by a third to 40 crore from a peak of 200 crore last year.

In January, Paytm Mall shut its national ecommerce shipping business and done away with discounting and cash back-led business.

“Our focus for this year is 1.5 times the revenue for one-fifth the cost,” Dalmia said.

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