Paytm Mall offline to online business model a hit, says company
The system is unique and what is even more important is that it works! On Monday, Paytm Mall said that its O2O (offline to online) model has been instrumental in doubling its revenue in FY19 when compared to the last fiscal.
The system is unique and what is even more important is that it works! On Monday, Paytm Mall said that its O2O (offline to online) model has been instrumental in doubling its revenue in FY19 when compared to the last fiscal. Paytm Mall said that it is leveraging its successful O2O model to save costs up to 35 per cent and moved away from the warehouse model.
In a statement, Paytm Mall revealed that it has successfully managed to cut costs and that the actual overall figure is a whopping 50 per cent in the same period. According to Paytm Mall, success has been achieved due to its focus on cutting costs, especially overheads, as well as becoming a lean and operationally profitable organisation. Paytm Mall is focussed on products like fashion, home, consumer electronics and mobiles.
"We have incredibly turned around our business model using O2O. Now, every order that we ship is profitable and will become EBITDA positive by FY22. This fiscal year, we are focused on increasing our revenue 3x, while reducing the cost by another 60 per cent." said Srinivas Mothey, senior Vice-President at Paytm.
However, for thos elooking for big price cuts, there was not a great takeaway. "We will continue to invest in the business for profitable expansion and not for unreasonable discounts," he said.
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