One97 Communications, the parent firm of Paytm, is lifting $300–500 Million to push its O2O (online-to-offline) retail business and make users employ its platform for making transactions, claimed people well known with the subject to the media in an interview. Renu Satti, who was leading Paytm’s Payments Bank, has taken back from her present role and will take on the role of New Retail’s COO.
Paytm is presently in discussion with US-located investors as well as its current stakeholder SoftBank for the newest funding, which is expected to capitalize the digital payments company at almost $10 Billion, the sources claimed. The new funding will be aimed at the hyperlocal O2O business, which focuses to shore up footfalls for offline shops by providing discounts & deals via Paytm’s application. Users will pay via QR codes in these shops, thus elevating transacting numbers for the digital payments firm. Currently, merchants will not be charged by Paytm for commission. They will, on the other hand, have to pay a fee for marketing costs and logistics.
Paytm Mall, which has also used the O2O business model, will stay separate and aim on a different kind of scenario. While Paytm’s New Retail is retailing groceries, food, and medicines, which are instant requirements, the O2O model for Paytm Mall has focused around associations with brand shops for making easy deliveries. New Retail will not have any warehouses unlike how the supply chain operates for horizontal marketplaces such as Paytm Mall.
On a related note, Paytm has branched out into hotel bookings and events & movie ticketing, among others, to increase payments. Vijay Shekhar Sharma, Paytm founder & CEO, claimed, “Paytm needs to allow same-city commerce and assist grocery shops, restaurants, and pharmacies develop their walk-ins via deals & offers. We have already joined hands with 4,500–5,000 vendors.”