We are well funded and here to stay- Amit Sinha, COO, Paytm Mall
Having raised a fresh round of funding recently, Amit Sinha, COO, Paytm Mall believes that the differentiated business model of the company will help it sustain the heat of the market.
The once booming e-commerce sector makes occasional news nowadays. The cut throat competition, huge cash burn and big discounts have reduced many of some of the established players into struggling entities. The ones surviving right now have deep pockets and long term strategy. In other words, the e-commerce sector has undergone the consolidation phase and is almost done with it.
In this climate of big movers, Alibaba backed Paytm Mall—the e-commerce venture of the digital payment giant Paytm—is making steady progress. Having raised a fresh round of funding recently, Amit Sinha, COO, Paytm Mall believes that the differentiated business model that Paytm Mall offers will help it sustain the heat of the market.
“There has been some time since the consolidation has been happening. It was already clear that there are going to be three major players. Amazon and Flipkart existed because of a particular business model and we are coming with our own business model which is significantly different. All three of us are quite well funded and here for the long run. I don’t think any of us are going out of the business anytime”, stated Sinha.
According to Sinha e-commerce in India is just 2 to 3 per cent of the total retail market, which is estimated to be in the range of $600 billion. Speaking about the potential of the e-commerce sector, Sinha stated, “E-commerce is limited right now to few segments only. There is a lot to be addressed. Out of the total consumer spend basket, it’s only the mobile, shoes and a few western wear items that are in demand. Customers end up spending everything else offline. However, in the coming time a lot of that spend will move online.”
Ask him if the e-commerce players before them have set a wrong precedent of offering big discounts at the cost of incurring huge losses, Sinha explains, “The precedent was definitely because of the hyper competition that e-commerce witnessed because India is a vast market and everyone wanted a share in it. The fact is that people will do transactions online whether they are driven by discount or mere convenience.”
For Sinha the future of e-commerce will be a fine balance between offline and online retail and the online category will move beyond mere gadget sales into a broad based one. “E-commerce will go beyond just mobile sales. Also the offline and online will be increasingly interdependent rather than one versus the other, as it was made out to be earlier. People will prefer the combination of the two”, added Sinha.
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