Alibaba backed PayTM Mall has had a good festive season in India with bountiful divali festive sales. They claim that they have successfully started taking on Flipkart, which has absorbed eBay India and also Amazon too and bagged 20% od festival sales in September and October 2017.
Paytm Mall was only launched as a distinct ecommerce platform in India six months ago. They now claim to have market share of 15-20% during the sales. The company, which has been heavily promoting on its online-to-offline (O2O) model, said 40% of its festive sales were contributed by this model and claims to have achieved an annualised GMV run-rate of approximately $4 billion, a target that was set for March 2018.
Their festive sale month (from September 20 till mid-October) is said to have seen GMV to an estimated $300 million.
In particular the “online to offline” model has been successful for the relatively new player in Indian ecommerce.
Paytm Mall’s chief operating officer Amit Sinha Says about the results. “People shop less post-Diwali season, but that will not impact our business since it is a horizontal platform selling products with repeat purchases as well. Moreover, our O2O model will lead to a month-on-month increase in retailers on board, thereby causing an increase in acquisition of customers.”
