Paytm Mall, the eCommerce entity of India’s leading payments platform, has said that it will be spending over Rs 224 crore for the improvement of its logistics service.
The company will spend the majority amount in offering same-day and next-day delivery service. Amazon and Flipkart, two dominating player in the market are already offering similar services.
It will also be spending money to bolster the core technology and infrastructure of the eCommerce platform. Earlier this month, Paytm Mall had announced that it will be spending Rs 32 crore to on-board more than 50,000 sellers on its platform.
Commenting on the rationale behind the investment, Paytm Mall Chief Operating Officer Amit Sinha said,
We aim to build a trusted and highly efficient logistics network to enable our partnered retailers to offer same-day and next-day deliveries. This will help local shopkeepers offer a more convenient shopping experience and enable brands to save up to 50% on logistics, as they will be able to bypass inter-city logistics costs.
While Amazon and Flipkart has in-house logistics arm that handles shipments, Paytm Mall has joined hands with Blue Dart, Delivery, and Xpressbees.
It seems that Paytm has decided to focus on the eCommerce entity more than its other services after it raised a massive Rs 9000 crore funding round from SoftBank at a valuation of $8 billion.
Last month, Paytm transferred over 800 employees from its parent company, One97 Communications Ltd, to Paytm Mall, ensuring enough manpower to scale the division. The company had earlier said that it has plans to hire another 2,000 employees, including a team of technical experts.