Mobile commerce company, Paytm, is aiming to clock $1 billion gross merchandise value by the end of this financial year. Majority portion of this revenue would still be from its recharge business, which is a high-volume, low-margin business. However, the company has a strategic plan to tap customers via the e-commerce payment route.
On the back of increasing smartphone penetration, Paytm is adding 2 million wallets per month and has 15 million active wallets within 10 months of launch.
According to market reports, the company is in talks with Flipkart, Amazon and IRCTC to provide its platform to facilitate payment.
According to Vijay Shekhar Sharma, Paytm’s Chairman and Managing Director, the company has crossed a milestone of having more than 10,000 vendors on its marketplace with 78 per cent growth month-on-month. The firm is now targeting to have 1 million merchants on its platform in the next two years.
Since its launch in January this year, Paytm’s marketplace has grown 11 per cent month-on-month. It saw monthly transaction volume of 17 million last month. As of October, the gross transaction value on the marketplace hit $47 million. The company receives 800,000 orders a day. It is targeting 1 million orders per day by 2015.
“Even as mobile commerce is a fast growing segment, it is going to be payment driven business, then become a marketplace business,” said Sharma.
Paytm has recently been in news for being in talks to raise $150-200 million from private equity firms for a minority stake, making it the latest online player to venture into fund raising for growth capital.
“Existing investors have committed around $60 million to the firm as part of an impending funding round, worth $150-200 million,” said Sharma, who is also co-founder and chief of One97.
The company had previously raised funding from SAIF Partners, Intel Capital and Silicon Valley Bank, which had put in over $28 million in separate funding rounds.
One97 Communications, which was primarily a mobile value-added service provider is better known for running the digital goods and services marketplace Paytm.
“We need $150 million. However, the offers have gone up to $250 million. However, since our business model doesn’t require that much of money, we are still working on the final investment figure," he said.
Sharma stated that the company plans to have 1 million merchants in the next two years and also add 2,000 employees by December 2015. The firm currently has 1,600 employees. “Paytm has a user base of 22 million which include 15 million mobile wallet customers. We plan to increase the user base to 26 million by the end of this year. With 15 million wallets, we are bigger payment option than many private banks combined,” he added.
The firm is also targeting 50 million wallets by March 2015 and 100 million wallets by December 2016.