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Vijay Shekhar Sharma: Paytm targeting $100 bn in GTV for FY 20

The Softbank and Alibaba-backed company has plans to introduce stockbroking as well as look at international markets for expansion.

, ET Online|
Updated: Apr 10, 2019, 01.58 PM IST
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Digital payments firm Paytm is targeting $100 bn in Gross Transaction Value (GTV) this fiscal, on the back of its thriving ecommerce platform with a revamped business model strategy, payments and other allied businesses. At present, the company boasts of $6 bn in GTV every month.

Speaking to ET on the sidelines of AIMA’s 5th National Leadership Conclave in the capital on Monday, Vijay Shekhar Sharma, Founder and CEO, Paytm debunked reports of the ecommerce business not doing well and consequently scaling down. “In the last six months, our e-commerce has been profitable and grown three times. We have moved forward from a business model which was mainly centred around warehouse-led distribution to a store-led one for consumers. That has changed the texture of the company. We have about 600 more people recruited,” he highlighted.

Earlier, there were reports of Paytm possibly planning to exit the mall business in the face of stiff competition from marketplace giants Amazon and Flipkart.

Sharma also mentioned that many of the employees have been moved to other functions or to a different role. “It has been an employee choice. They can choose from our range of businesses and at a location that suits them,” he averred.

Speaking about how the O2O (Online-to-Offline) model has helped them reduce costs by up to 70%, Sharma said it will be a strong focus for Paytm going forward. The success of the O2O model, he said, has been pleasantly surprising. “The power to serve a small retailer which is a physical shop is actually the better business model. By putting the shopkeeper in the centre of our business strategy, we have been able to greatly reduce delivery time. Atleast 40% of our deliveries have taken less than two days, without requiring an extraordinary logistics’ effort. Costs have come down drastically by 70% because a huge amount of logistics’ cost has been taken care of by shops and inventory costs,” he added.

Sounding hopeful on the upcoming elections, he said that some of the companies in the digital space should receive more business. “It is a sort of carnival in the country where everyone participates so technology ends up playing a huge role. The engagement matrix on all digital platforms will expectedly be higher,” he said, optimistic of the road ahead.

Attributing the growth of Paytm to the huge opportunity presented by India, he said that their businesses are growing in the country because customers are now increasingly becoming adopters of technology businesses platforms that are available.

Going forward, the Softbank and Alibaba-backed company, has plans to introduce stockbroking as well as look at international markets for expansion. Besides this, he said that more fintech innovations can be expected along the way. “App-based bank passbooks and fixed deposits without charges for breaking the deposit will be another innovation from our stable.”

Quizzed on the Sonia Dhawan controversy which had Paytm hogging the limelight for all the wrong reasons, Sharma said it had left him a lot wiser. “I got to learn a whole lot of things that people could be doing. So I learnt new things from this entire incident,” he stated.

He, however, denied all speculations of Dhawan joining back the company.

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Paytm in talks with T Rowe Price for its funding round

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