Indian based startup unicorns like Flipkart, Zomato, Swiggy and Paytm have recently been under the radar of Twitterati accused them of getting investments from Chinese investors. This anger has abruptly taken a rise after the deceitful act done by China at the Galwan Valley after 20 Indian soldiers were killed.
People have shown their anger on Twitter and have also suggested to start boycotting the services of these applications which are either china based or being funded by Chinese investors all over India. Many users have asked that these companies should get their stakes back as most of the stakes of these companies are in the hold of Chinese investors.
People on Twitter are asking people to boycott and it can be a harm to their current market situation. Although they have not come up with any formal response regarding this they posted a photo informing people that how they are trying to help sellers across India to work hard and how they will support them by providing their health insurance plans, by laying off the storage fees and trying to provide flexible work policies making them feel more comfortable and helping these sellers to ease their work.
China has created a large effect in the Indian market by investing frequently in the past 5 to 6 years. Many of the Indian homegrown startups have been backed up by Chinese investors. China has been a key investor in the technological development of the Indian market. With the recent situation where people are boycotting Chinese goods and the Government is banning Chinese Apps, things are turning worse.
“The overall sentiment is anti-China and that is building on various counts which have now been aggregated. A lot will depend on whether or not the government wants to play the hardball.The social media storm was inevitable. In the past also we have seen how some apps were downgraded citing ‘national interest’. There could also be some direct business impact for the time being. However, how it will reflect in the long term will totally depend on the way the government plans to handle the current situation.” – Anonymous Industry Executive
Snapdeal Statement
While companies like Flipkart, Ola, Zomato, Swiggy and Oyo have not given any formal statement or uttered any word regarding this but Snapdeal came forward to give a statement.
“Snapdeal has always been focused on creating opportunities and access for India’s small and medium businesses – sellers and manufacturers. For over a decade, we have championed the cause of Indian MSMEs and provided them with a platform to grow and succeed. As a proudly Indian company, we remain committed and steadfast in this mission.” – Snapdeal
China’s Investment and Future Prediction
A source named Gateway House has estimated around $4 billion of investments have been done by them in India’s technology-based Startups in 2019 while a $2 billion investment was done in the year 2018. Moreover, at least 18 of the top 30 startups in India are being backed by Chinese investors.
Ant Financial, Tencent, Shunwei Capital, and Alibaba are some of the big Chinese investors who have their stakes in Indian based unicorns. Well, a startup founder has also stated that after the month of April the Chinese investments have started to come down due to which the doors have been opened for other avenues which are based in UK, USA, Middle East and India.
“Fresh investments will take time because everyone is cautious as to what will happen next. There is going to be a bit of a lull because the sentiment is certainly low. Both Wuhan and border tensions have come at the same time. There is an element of negativity. However, it will not have a major impact on the existing companies operating in India that have Chinese investors on board. The very fact that Chinese companies have invested in Indian firms, doesn’t make them ‘Chinese products’. There are so many Indian companies that have set up manufacturing units in China. If we keep on boycotting things like this, we will end up hurting our own economy and the talent growth” – Sreedhar Prasad, Independent E-commerce Analyst
Conclusion
Although it will be a hard road for India on the economic front for a while as there is a ban on the investments by the world’s second-largest economy it will help in getting invested by other countries too which are more reliable and will help create a good relationship with them. Also, it will be helping all the Indian based startups and entrepreneurs and provide them with a great opportunity in the near future.
With the current tensions at the border, it looks impossible for a while to expect good relations with China and the spread of the deadly coronavirus will also play an important role in the Chinese market as many countries would give a second thought to having economic relations with them.
The USA is the world’s largest economy, and is showing some disinterest in China for the past two to three months too can look forward to India and can become a prime investor in these firms.
FAQs
How many Chinese apps are banned in India?
224 Chinese are banned in India since 2020
Is PUBG banned in India?
PUBG is banned in India under the instruction of the Government of India.
Why Chinese apps are banned in India?
Chinese apps are banned in India because of the security and thereat of Indian citizens and the ongoing conflict between the two countries.
Paytm is India’s largest platform for mobile payments and commerce. The word is an abbreviation for “pay through mobile “. This digital payment system and fintech company have its base in Noida. It was founded in 2010 by Vijay Shekhar Sharma in Noida with an initial investment of $2 million.
Beginning as a prepaid mobile recharge platform it later expanded to be a single destination for all kinds of bill payments and much more by 2013. Today the platform operates in more than 11 Indian languages and is accepted across almost every grocery store, restaurant, pharmacy and whatnot. In 2020 the revenue of the company was increased by 10% to reach Rs.3629 crore.
This article will explore the business model of Paytm to understand how Paytm earns money.
The business model of Paytm is worth looking at due to its multipronged approach to ensure a seamless experience for both the company as well as the customers. Let’s look at the various components of the business model canvas of Paytm to further understand its details for generating revenue and constantly being at the forefront of innovation and providing the best possible online services to its clients.
Key partners of Paytm
With the kind of services that Paytm offers, it had partnered with a huge number of insurance companies, hotels, shopping centres, pharmacies, hospitals and every other institution where transactions through Paytm is accepted now.
This collaboration with a plethora of organisations to gather bills and payments for various services enabled Paytm to expand its partnership over time. It has also partnered with banks to provide escrow services.
Key Activities of Paytm
The major activity carried out by Paytm is to facilitate the transfer of funds from one place to another. They also ensured that the best possible security is provided for the millions of transactions that are taking place through their platform.
Another important activity of Paytm includes preventing scams and other cyber frauds in its platform. Apart from that they also strive to make Paytm a single stop for all kinds of payments that an Indian household should take care of.
Value Propositions of Paytm
The prepositions that augment value for Paytm begins with recharging business. Initially providing prepaid recharging services it later expanded to postpaid services as well. It further expanded to creating a Paytm wallet which served as a parallel bank account for the clients.
From there Paytm has devolved into curating the idea of digital gold where customers can store gold digitally and later use them to complete transactions or even exchange it for actual gold of the same value.
Paytm has also set up various e-commerce verticals wherein it serves as an important component in the completion of transactions.
Key Resources of Paytm
There is absolutely no doubt that a company cannot survive without having an inexhaustible resource domain. As far as Paytm is concerned its biggest resource is its partners. As the company started to grow it received support and funds from many resourceful entities like the Alibaba group and Soft Bank vision fund.
One cannot overlook the amount of support that these resources give to their company. Another key resource that drives Paytm is its RBI license that lets Paytm legally operate the system of Paytm wallets.
It has revolutionised the idea of digital currency, especially during the time of demonetisation. Its first-mover advantage in the technology platform is yet another key resource of the organisation.
Cost Structure of Paytm
Being a service-driven technological platform, most of the expenses that Paytm has to bear is related to its own platform and customer acquisition. Apart from that a large part of its budget also goes into improving the security of the platform and preventive measures to avoid any kind of fraudulent activities. It also invests in systems to avoid the risk of money laundering.
Customer Relationship of Paytm
Handling over 65 million customers is not an easy job. To cater to the concerns and complaints of its clients Paytm has a customer support service that is functional 24×7. The customer can make use of phone calls or chat services to voice their concerns and get them rectified.
In many cases, it also has clear-cut directions to navigate the customer to whatever service they need on their own. These are accessible directly from the website or the app in itself.
Customer Segments of Paytm
The wide variety of services offered by Paytm is reflected in its multilayered customer segments as well. The most important customer segment of Paytm is the users of its e-wallet. This is mainly because of the fact that the wallet is like a flagship service of the organisation.
Another segment is that of the users of the app which constitutes the middle class of the country. Paytm is also seeing a growing segment of customers in the older age group as well.
Channels of Paytm
Considering the big name that Paytm is in India, there is no doubt that the primary channel of distribution of the company is its website and app in itself. Apart from that Paytm also ties up with the sites of their clients, e-commerce platforms, vendors sites et cetera to promote the platform. Paytm also ensures that they attract customers through advertisements and constant follow-ups.
Main Products and Services of Paytm
Paytm makes money through various businesses like Paytm mall, recharge services, ticket booking, bill payment etc. By facilitating a gateway solution to every transaction, Paytm ensures a steady flow of money.
The launch of Paytm wallet in 2014 was revolutionary as far as the company was concerned. Since then it has evolved as a parallel bank account as far as the users are concerned. They have also released a digital gold service wherein it allows users to buy gold digitally.
In future, they are also planning to collaborate with various developers so that the customers can convert their digitally purchased gold into finished commodities.
The major revenue segment of Paytm is through commissions that it derives from customer transactions that take place on its platforms. As mentioned earlier they have collaborated with banks to create escrow accounts facilitated by Paytm wallets. The company generates revenue from these escrow accounts as well. With every transaction, both Paytm and the partner bank receives a predetermined interest that was mutually agreed upon between them.
Revenue of Paytm
The following are the various businesses through which Paytm earns money
MarketPlace (Paytm Mall)
Paytm Wallet
Recharge Services
Bill Payments & Ticket Bookings
Digital Gold
Coupon Codes/Voucher cards
Payment Gateway Solutions
Paytm Payments Bank
FAQs
How does paytm makes money?
The major source of revenue for Paytm is commissions, it charges merchants a small fee which is mutually agreed upon. It also takes commissions from the users.
Who is the founder of Paytm?
Paytm was founded by Vijay Shekar Sharma in 2010.
What is the revenue of Paytm?
The revenue of Paytm is around 3,187.6 crores INR as of 2021.
Paytm is India’s one of the biggest fintech startups founded in August 2010 by Vijay Shekhar Sharma. The startup offers versatile instalments, e-wallet, and business stages. Even though it began as an energizing stage in 2010, Paytm has changed its plan of action to become a commercial centre and a virtual bank model. It is likewise one of the pioneers of the cashback plan of action.
Paytm has changed itself into an Indian mammoth managing versatile instalments, banking administrations, commercial centre, Paytm gold, energize and charge installments, Paytm wallet and many other provisions which serve around 100 million enlisted clients.
The areas served by Paytm are India, Canada, and Japan, it is also accessible in 11 Indian dialects. It offers online use-cases as versatile energizes, service charge installments, travel, motion pictures, and occasions appointments. In-store instalments at markets, leafy foods shops, cafés, stopping, tolls, drug stores and instructive establishments can be accessed through the Paytm QR code.
One 97 Communications, the parent company of Paytm, is all set to raise its capital target of over ₹16,600 crores ($2.2 billion) through an IPO that it had filed earlier in July 2021. Paytm is seeking to raise $25 billion to $30 billion valuation post this IPO.
According to the organization, more than 7 million traders crosswise over India utilize its QR code to acknowledge instalments straightforwardly into their bank account. The organization uses commercials and pays a special substance to produce income. Let’s look at this detailed case study on Paytm to know more about its growth and future plans.
1st November 2021 – The much-awaited Paytm IPO was launched with a price band of ₹ ₹2,080-2,150 per share.
13th October 2021 – Paytm users can now store Aadhaar, driving license, vehicle RC, insurance via Digilocker. Digilocker Mini App on Paytm offers access to these documents to users even when they’re offline or in a low connectivity zone.
8th October 2021 – Paytm is looking forward to bringing in sovereign wealth funds as anchor investors in the company’s pre-IPO placement.
5th October 2021 – Switzerland-based insurance giant, Swiss RE might join Paytm’s insurance business’ board.
3rd October 2021 – Paytm has acquired 100% stakes in CreditMate, a Mumbai-based digital lending startup.
Origin of Paytm
The saga and the emergence of Paytm are discussed in this section of the case study of Paytm. It was established in August 2010 with underlying speculation of $2 million by its originator Vijay Shekhar Sharma in Noida, an area nearby India’s capital New Delhi.
2013
It began as a prepaid portable and DTH energize stage, and later included information card, postpaid versatile and landline charge installments in 2013. By January 2014, the organization propelled the Paytm pocketbook, and the Indian Railways and Uber included it as an installment option.
The official launch of Paytm Payments Bank Operations in India
It propelled into web-based business with online arrangements and transport ticketing.
2015
In 2015, it disclosed more use-cases like instruction expenses, metro energizes power, gas, and water charge installments. Paytm likewise began driving the installment passage for the Indian Railways.
2016
In 2016, Paytm propelled motion pictures, occasions, and entertainment meccas ticketing just as flight ticket appointments and Paytm QR. Later that year, it propelled rail bookings and gift vouchers. Paytm’s enrolled client base developed from 11.8 million in August 2014 to 104 million in August 2015. Its movement business crossed $500 million in annualized GMV run rate, booking two million tickets for each month.
2017
In 2017, Paytm became India’s first installment application to traverse 100 million application downloads. That year, it propelled Paytm Gold, an item that enables clients to purchase as meagre as ₹1 of unadulterated gold on the web. It additionally propelled the Paytm Payments Bank and ‘Inbox’, and informing stage with in-talk installments among other products.
2018
By 2018, it began enabling dealers to acknowledge Paytm UPI and card installments straightforwardly into their financial balances at 0% charge. It likewise propelled the ‘Paytm for Business’ application, enabling traders to follow their installments and everyday settlements instantly. This drove Paytm’s shopper base to more than 7 million by March 2018.
The organization propelled two new riches—Paytm Gold Savings Plan and Gold Gifting—to rearrange long haul savings. It propelled into diversion and speculations, and stripe alongside AGTech to dispatch the stage of a transportable game Gamepind, and putting in Paytm cash with a venture of ₹9 large integers to bring venture and riches as board items for Indians. In May 2019, Paytm joined forces with Citibank to dispatch credit cards.
Paytm or “Payment Through Mobile” is India’s biggest installment, trade, and e-wallet undertaking. It began in 2010 and is a brand of the parent organization One97 Communications, established by Vijay Shekhar Sharma. It was propelled as an online portable energize site and proceeded to change its plan of action to a virtual and commercial centre bank model.
The organization stands today as one of India’s biggest online portable administrations that incorporates banking administrations, commercial centres, versatile installments, charge installments, and energize. It has so far given administrations to more than 100 million clients.
Paytm’s enhancement has built a solid reputation and has turned out to be praiseworthy for some in the online installment industry. One of its increasingly vital accomplishments is in its joint effort with the Chinese web-based business Goliath, Alibaba for immense measures of subsidizing.
Aside from being a pioneer of the cashback plan of action, the organization has been commended for its introduction as a new business able to build huge partnerships in a limited time period.
Clients of Paytm Business
Paytm’s core focus is on serving its Indian client base, especially the cell phone clients. Numerous Indian clients saw the computerized world as an opportunity to open a financial balance. Accessing simple online installments missed the mark, and clients wound up with only poor experience. Paytm presented itself as a superior option to deal with such situations.
Paytm Offers
A portion of Paytm’s increasingly conspicuous suggestions was reviving the business which was the organization’s underlying administration recommendation.
At that point, it proceeded to differentiate and progressed to creating more current administrations from any semblance of Paytm Wallet, E-business vertical to Digital Gold.
These improvements were appreciated in the form of the Chinese mammoth Alibaba’s favours. Immense totals of cash were pumped into Paytm by Alibaba, expanding Paytm’s speculation potential. Paytm used cricket and TV promotion to capture more clients.
Relationship with Clients
Paytm Customers
Paytm has a 24*7 client care focus to interface with its clients. Simultaneously, the vast majority of Paytm administrations are self-served in nature and are open through their foundation straightforward.
Paytm’s Channel for Business
Paytm utilizes numerous channels to draw in clients. Aside from its very own site which drives clicks, Paytm has shaped associations with numerous customers and seller destinations that support its endeavour. Demonetization in India enabled the organization to succeed altogether and arrive at new clients too. Disconnected advertising is likewise a piece of their client procurement process.
Distinct Advantages
The RBI (Reserve Bank of India) permit fills in as Paytm’s fundamental asset. It should be explicit to Paytm. Different assets like the plan/programming society make it simpler for lower-pay Indians to use Paytm.
Key Roles
Paytm, being an innovation stage, dangers perils, for example, security and misrepresentation which is the reason it needs to take viable measures in ensuring its buyer’s cash by improving its security. It is likewise rolling out new improvements inside its foundation to draw in new clients and access their computerized wallets.
Partners of Paytm
Paytm accomplices with the banks that give it installment excursions into the financial framework just as escrow administrations. It works together with a heap of associations that accumulate bills and installments from its customers for its administration.
Structure of Costing
Paytm serves numerous clients which is the motivation behind why it is so cost-driven. The vast majority of its costs are identified with its foundation and client obtaining. It’s a typical cost-shared by numerous organizations over the reality where client securing cost is significant.
The cash utilized in this procedure is higher than the income it makes in its underlying buys. Most of its financial limit is to put resources into sloping up of its security and stay away from the danger of misrepresentation, particularly when it needs to deal with more than 65 million clients in its foundation. It incorporates a framework that empowers clients to avoid any tax evasion hazard.
Revenue Model of Paytm
The Paytm revenue models come in two structures. Paytm makes commissions from the client exchanges through their utilization of its foundation. Escrow Accounts are the accounts from where it creates their income. Inferable from the non-appearance of its hidden capital, it offers clients no intrigue. Starting in 2018 Paytm has aggregated 3314.8 crore INR in income.
Paytm Wallet
Paytm Wallet
Paytm wallet is one of Paytm’s best benefits that structures a connection between the bank and the retailers. This semi-shut wallet empowers you to take care of your tabs, pay for your tickets, or pay anyone concerned.
Paytm wallet separated from its profit, as approved by the RBI, has the advantage of accepting enthusiasm for a purchaser store, much the same as some other Payment Gateways.
When you store a specific measure of cash in your Paytm wallet, it will at that point set aside that cash in another bank from which it will win enthusiasm eventually.
It is the Paytm wallet’s fundamental capacity. For instance, suppose you make an installment of Rs. 1000 to a merchant and the vendor makes 10 exchanges to increase Rs. 10,000. If the installment of that sum is made through the Paytm wallet, the Paytm wallet will take a portion of about 1% of the aggregate sum. So the merchant will get around Rs. 9715.
Mobile Recharge Business
Paytm Mobile Recharge
Since its origin in 2010, Paytm’s underlying intention was to give online portable energizing administrations. Its capacity to create income was constantly shortsighted. Paytm’s administration guidelines are as praiseworthy and proficient as those of other telecom specialist co-ops running from Vodafone to Telecom.
The administrations are without shortcomings and give solace to their clients. As of now, Paytm increases a commission of 2-3% per energize. It is because Paytm, attributable to its support to its client to keep reviving through its foundation, has more grounded power in dealing than different merchants. That is the reason the commission it obtains is so high. This commission from its revive administration fills in as its income.
These administrations have supported the organization essentially in extending its base and thus, developing exponentially. When the client is fulfilled by the administration or item, he makes an arrival to a similar undertaking in this manner. This way Paytm does client maintenance and produces more traffic. Paytm has used this methodology to further its potential benefit and keeps on reaping positive results.
Paytm Digital GoldPaytm Digital Gold
Paytm Gold
Inferable from its organization with MMTC-PAMP, the outstanding gold purifier, Paytm has propelled “Computerized Gold”. This model enables clients to sell, purchase, or store gold in an advanced stage. Presently, clients need to pay at a rate just to get their gold conveyed to their families.
Paytm is very much aware of how much gold is put as a resource in India and is completely arranged to develop from this chance. The organization has made eminent arrangements to urge its clients to get their own Gold Bank Accounts individually. This record separated from empowering clients to purchase their gold will likewise furnish clients with simple access to other Paytm administrations.
Paytm Mall
Paytm Mall Website
In February 2017, Paytm propelled its Paytm Mall application which enables purchasers to shop from 1.4 lakh enrolled sellers. Paytm Mall is a B2C model enlivened by the model of China’s biggest B2C retail stage, TMall. For 1.4 lakh merchants enlisted, items need to go through Paytm-guaranteed stockrooms and channels to guarantee buyer trust.
Paytm Mall has set up 17 satisfaction focuses crosswise over India and joined forces with 40+ messengers. Paytm Mall raised $200 million from Alibaba Cluster and SAIF Partners in March 2018. In May 2018, it posted losses of roughly Rs 1,800 crore with an income of Rs 774 crore for money related to the year 2018. Moreover, the piece of the pie in Paytm Mall dropped to 3% in 2018 from 5.6% in 2017.
Advanced installments organization Paytm has professed to arrive at gross exchange esteem (GTV) of over $50 billion, while checking 5.5 billion exchanges in FY19. The Delhi NCR-based organization credited this development to the rising appropriation of Paytm over numerous utilization cases, for example, retail installments, expenses, utility installments, travel booking, excitement, games among others. It has as of late propelled membership-based prizes program (Paytm First) to aid development alongside expanding the client maintenance.
Discussing the feasible arrangements, senior VP of Paytm, Deepak Abbot stated, “We are centred around creating tech-driven arrangements, incorporated client lifecycle the board, upgrading the client experience and growing to Tier 4-5 urban communities. We are certain to accomplish 12 Bn exchanges before the part of the bargain year.” Before a month ago, the Ministry Of Electronics and Information Technology (MeitY) had solicited Paytm to help its objective of encouraging 40 Bn advanced exchanges in FY20.
The organization shared designs to incorporate man-made brainpower in its model and achieve 2x development this year. Paytm professed to possess half piece of the installment entryway industry in India, with 400 Mn month to month exchanges on the stage.
Established by Vijay Shekhar Sharma in 2010, Paytm furnishes various new companies and huge organizations with arrangements running from a shareable PaytmQR code to profound coordination.
It empowers clients to process computerized installments through any favoured installment mode including credit and check cards, net banking, Paytm wallet, and UPI (bound together installment interface). Paytm had likewise propelled its very own installments bank in 2017.
Paytm Payments Bank is versatile first keep money with zero charges on every online exchange, (for example, IMPS, NEFT, RTGS) and no base equalization prerequisite. For investment accounts, the bank right now offers a loan cost of 4% per annum.
Expected Future Growth of Paytm
Computerized installments organization Paytm said it is looking to dramatically increase its exchange volume to 12 billion by part of the arrangement, from 5.5 billion out of 2018-19.
Paytm checked 2.5 billion exchanges in 2017-18. Paytm said it accomplished gross exchange esteem (GTV) of $50 billion out of 2018-19, as contrasted and $25 billion every year prior. GTV is the estimation of all-out exchanges done on the stage.
“This expansion is a consequence of the fast development in the reception of Paytm’s computerized installments arrangements crosswise over on the web and disconnected for different use cases including retail installments, charges, utility installments, travel booking, amusement, games and that’s only the tip of the iceberg,”
The organization said in an announcement. Its membership-based program Paytm First was propelled in March has pulled into equal parts a million supporters, the organization added.
Paytm has 350 million enrolled clients starting on 5 June, an organization authority said. Paytm offers a variety of installment alternatives that incorporate installment through portable wallets, just like ongoing installment framework Unified Payments Interface (UPI) and web banking.
The organization has been centred around structure instruments for dealers to streamline their everyday business needs. This has brought about enormous dealers obtaining who are very much furnished with innovation to acknowledge all installment modes (cards, wallet, and UPI). Paytm now intends to concentrate on embracing computerized reasoning and improving the UI.
Why was Paytm Removed from Google Play Store?
Paytm India app was removed from Google Play Store because it violated Google guidelines. While other apps like Paytm for Business, Paytm mall, Paytm Money, and a few more were still available. But after a few hours of being taken down, the Paytm app was back on Google Play Store.
#Paytm out of Google Play Store. Google: We don’t allow online casinos/support any unregulated gambling apps that facilitate sports betting. It includes if app leads consumers to an external website that allows them to participate in paid tournaments to win real money/cash prizes pic.twitter.com/poeZzXw5nA
“We have these policies to protect users from potential harm. When an app violates these policies, we notify the developer of the violation and remove the app from Google Play until the developer brings the app into compliance. And in the case where there are repeated policy violations, we may take more serious action which may include terminating Google Play Developer accounts. Our policies are applied and enforced on all developers consistently,” Google Added.
Paytm’s IPL 2021 Ad taking jibe over the slow payment of Google Pay.
FAQ
Is Paytm a fintech company?
Yes, Paytm is India’s leading and one of the most valued fintech startups founded by Vijay Shekar Sharma in 2010.
What are the areas served by Paytm?
Paytm is a leading fintech startup that not only operates in India but it also serves Canada and Japan.
When was Paytm established?
Paytm was founded in 2010 by Vijay Shekar Sharma.
What is Paytm and how does it work?
Paytm is a leading financial service and bill payments app that offers financial solutions to its customers, offline merchants and online platforms. All you need to do is open the Paytm app on your phone, click on ‘Pay’, and select ‘QR code’. Scan the QR code of the receiver and enter the amount to be paid. The money will be transferred in a few seconds.
How much does Vijay Shekhar Sharma own in Paytm?
Vijay Shekhar Sharma currently owns 14.61% of the company.
Paytm Payments Bank after successfully providing their VISA virtual Debit cards to more than 4.5 million customers have now launched their physical VISA Debit cards which enables the users to upgrade to a contactless payment. Let’s look at the newly launched VISA Debit card, how to order and use it.
The new physical VISA Debit card that is launched by Paytm is a contactless globally accepted card. The card can be used to pay for shopping, gadgets or any other items as well as it can be used in the ATMs to withdraw cash in India as well as abroad.
The VISA Debit cards come with an NFC chip which will allow the users to pay the money with just a tap on the POS machine available at the store. The contactless debit card is common and have been widely accepted across the globe. They have been reported to be safer and highly secure.
The card also provides various rewards, offers and also provides an option for the user to enable or disable the card on the Paytm Payments Bank app according to their convenience.
In order to apply for the VISA Debit card, you should have a savings account with Paytm Payments Bank. You will have to download the app or visit their website in order to open account. Once you have opened the account and filled the KYC, the card will be delivered to your doorstep.
Even the users who already have a Paytm savings account and a virtual VISA or RuPay Debit card will have to visit the website and order the card. The users who have a RuPay Debit card will have to upgrade to a VISA debit card and order the physical card on the website.
If you already have a physical RuPay Debit card, you will have to block the physical card and apply for a digital VISA Debit card and later follow the above step of ordering the physical card from the website or the mobile application.
Paytm Website
How to activate the Paytm Physical Debit Card
In order to activate your Physical debit card, you will have to scan the QR code through the Paytm Payments Bank app which will ask for your bank passcode. Once the passcode is entered, you will be asked to verify your debit card details and will be prompted to set your ATM pin. Once you confirm your ATM pin, your physical card will get activated.
The Paytm Payments Bank’s VISA Debit and ATM card would cost an amount of INR 250. Paytm Payments Banks claims to have simplifying the banking process of the millennials since their establishment.
FAQ
What is Paytm Visa debit card?
The new physical VISA Debit card launched by Paytm is a contactless globally accepted card, which can be used for shopping or can be used in the ATMs to withdraw cash in India as well.
What are the benefits of Paytm debit card?
You can Withdraw cash from any ATM in India, you can also Swipe your card at any store or website across India and Paytm offers Cashback at 200+ stores across India.
Can we withdraw cash from Paytm debit card?
Yes, you can withdraw cash from Paytm physical debit card from any ATM in India.
Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved byNearbuy.
Owing to a lack of time and fair prices, everybody nowadays prefers online shopping. The eCommerce industry was last valued at $22 billion in 2018 and is estimated to be worth around $200 billion by 2027. Thus, the growth that the eCommerce industry is seeing is beyond comparison. This outstanding growth that the industry has seen and the exponential growth that is predicted for the industry could only be possible with the range of successful players and the pioneers of the idea. Moreover, the e-commerce players have rapidly grown over the past couple of years to become hyper-local entities to serve their customers better.
Gurgaon-based Nearbuy is one of the firsts of Indian hyperlocal eCommerce companies. The Indian hyper-local eCommerce company, founded in 2010, has been built to extend an array of products across diverse categories for the customers to buy almost anything when it comes to services. So, whether the users want to dine online, relax at the best spas, or discover their city most intimately, it is Nearbuy that they looked up to.
Nearbuy.com, which was formerly known as SoSasta, Crazeal, and Groupon, was formed in 2015 and now stands acquired by Paytm since December 7, 2017, when the digital payments giant acquired Nearbuy and its parent organization, Little, signed a merger deal of the two well-funded companies. The company still stands as a hyper-local, deals-based, e-commerce services company owned by Paytm.
Here’s a look at Nearbuy.com and its Founders and Team, Mission and Vision, Startup Story, Business Model, Revenue Model, Growth, Funding and Investors, Competitors, Challenges Faced, Future Plans, and more.
As of September 2019, Ankur Warikoo, the co-founder and ex-CEO resigned from Nearbuy. Warikoo announced that he would step down as CEO of Nearbuy in November, handing over the reins to co-founders Ravi Shankar and Snehesh Mitra. Shankar, who was previously the COO of Nearbuy, will take over as CEO, with Mitra taking over as COO of the Paytm-owned firm. Warikoo will remain a shareholder and member of the company’s board of directors.
About Nearbuy and How it Works?
Nearbuy.com (Nearbuy India Private Limited) is India’s first hyper-local online services platform, built to let consumers and local merchants connect and interact along with helping them get the best deals possible. The company was first founded as SoSasta and was eventually acquired by Nasdaq-listed Groupon Inc in 2011. The company then changed its name to Groupon India in 2013. Finally, the company was named Nearbuy in 2015 when Sequoia Capital India and Ankur Warikoo bought majority stakes in the firm. Ankur Warikoo has no longer been the CEO since November 2019 when Ravi Shankar was appointed for the position.
Nearbuy.com was built with the aim to make things easily available for users. Whatever the needs of the customers may be, whether it is to enjoy fine dining, unwind at the world-class spas, or simply get their city known a little better, Nearbuy.com aimed to make all of them possible for the users.
Nearbuy provides its merchants with a clear branding and visibility-driven network that makes it easy for consumers to find their businesses in and around their locations. Nearbuy is available in 35+ markets, 18+ categories, and 100,000+ unique places, with over 50,000 merchants.
You can download the Nearbuy app from the Google Play Store or the iTunes Store to discover, purchase, and share exciting experiences around you.
Nearbuy – Mission and Vision
The mission statement of Nearbuy says, “We at nearbuy.com are taking hyperlocal ecommerce where it’s never gone before. So, if you thrive on the thrill of operating in a world of firsts,you belong at nearbuy.com.“
Nearbuy – Founders and Team
Ankur Warikoo, Ankur Sarawagi, Sumeet Kapur, Sachin Kapur, Ravi Shankar,and Snehesh Mitra are the founders of Nearbuy, which was founded in 2010.
Ravi Shankar, current CEO and Co-Founder of Nearbuy
Ravi Shankar L
Ravi Shankar did his Bachelors of Engineering before pursuing an MBA Marketing from Symbiosis Centre for Management and Human Resource Development. Ravi Shankar started with Wipro as a Presales Technical Consultant and went on to become the National Sales Manager there. Shankar was then the Business Director at Groupon. After leaving Groupon, Ravi Shankar joined Little Internet, where he was appointed as the CEO and Board Member. Nearbuy was the next company where he went on to become the COO, who was later appointed as the CEO for a brief period of more than a year. Shankar is currently serving as a Co-founder and Board Member of Nearbuy along with being the SVP at Paytm.
Ankur Warikoo
Mentor, angel investor, and public speaker, Ankur Warikoo is a Hindu College and Michigan State University from where he graduated with a BSc in Physics and an MS in Astronomy and Astrophysics, eventually pursuing an MBA in Finance from the Indian School of Business. Warikoo started as the Head of APAC market at Groupon Inc and was then appointed as the CEO. He was also a co-founder and CEO of Nearbuy and is currently serving as a Board member. Along with this, Warikoo is an Educator and Content Creator at Brand Warikoo and a Board member of the Indian School of Business.
Ankur Sarawagi
Another co-founder of Nearbuy, Ankur Sarawagi is an IIT Bombay alumnus from where he completed his BTech and MTech in Mechanical Engineering and Computer Integrated Manufacturing along with a Minor in Operations Research. Starting from Bain & Company, Ankur joined Groupon as the Director of Sales. However, it was only a brief stint that Ankur had with Groupon, eventually moving on to co-found Nearbuy. Ankur is currently serving as the Vice President, International Growth & Managing Director of WeddingWire India at The Knot Worldwide, which came into being as a result of the merger of WeddingWire and The Knot. Sarawagi has also served as the VP & Country Manager at WeddingWire.
Snehesh Mitra
Snehesh graduated from IIT Kharagpur in Electric and Electronics Engineering. Mitra was the co-founder Urban Blocks and Nearbuy along with being the CTO of the former and CTO, COO, and CPO of the latter organization. Mitra is currently serving as a Product Manager of Google. Along with these, Snehesh had also previously worked with Algo Works, Mobicules Systems, NDS Limited, Headstrong, HCL Technologies, and more in numerous key designations.
Sumeet Kapur
Sumeet Kapur is also known as the co-founder of Nearbuy. Kapur was a student of Delhi University from where he completed Bcom. (Hons.) before moving on to The Institute of Chartered Accountants of India and completing his CA degree. In his career, Sumeet has been the Co-founder and Director of Finance at Edutopper, CFO and Regional Financial Director of Emerging Markets (APAC), Co-founder and CFO at Nearbuy.com, Co-founder at Inflexion Point and is currently serving as a Founder and CEO at Wellcure.com.
Sachin Kapur
Sachin Kapur is also a Delhi University alumnus, who next went to obtain a PGDBM, Management from the Centre for Management Development. Starting with a brief stint at Fever 104 FM, Sachin went to become a Sr. Manager Marketing and Strategy at BigRock. Leaving the company after a year and a half, Sachin Kapur then moved on to become the CMO of Groupon. He eventually became the CO-founder and CMO of Nearbuy. Presently, Sachin is serving as Sr. Director Marketing at Coupang.
Nearbuy, owned by Paytm, is currently around 160+ employees strong.
Nearbuy – Startup Story
Nearbuy was formed or rather named in 2015. The company was founded as SoSasta in 2009, but it was acquired in 2011 by the Chicago-based parent of Nearbuy, Groupon Inc., in 2011 with an aim to begin operations in India. It then changed its name to Groupon India in 2013.
Ankur Warikoo and Ravi Shankar worked for Groupon as executives, with the former leading the company after the founders of SoSasta left. After Sequoia enabled the exit of Groupon Inc in 2015, Groupon India was rebranded as Nearbuy. Nearbuy, along with Little, was purchased by the payments company Paytm in a distress deal two years later. Paytm helped promote a share exchange arrangement between Little and Nearbuy shareholders, which resulted in Nearbuy becoming a wholly-owned subsidiary of Little Internet.
The purchase price for both companies was set at INR 272.31 crore. Following the acquisition, the company gained access to a large pool of capital along with a large Paytm userbase. It, however, struggled to make an impact because sales were unable to keep up with expenses. The company had total revenue of INR 33.28 crore in FY18, with losses of INR 49.11 crore.
Nearbuy – Name, Logo and Tagline
Nearbuy’s old name is Groupon India. After the rebranding of Nearbuy in August 2015, Groupon became a minority stakeholder in nearbuy.com.
Nearbuy’ s Company Logo
“The Lifestyle App” is the tagline of Nearbuy. Nearbuy comes in and says “Let us give you a discount for visiting the place through us.”
Nearbuy – Business and Revenue Model
Nearbuy is an Online-to-Offline services ecommerce platform, which is currently owned and funded by Paytm, established to connect the consumers with India’s largest network of local businesses. nearbuy.com makes it easy for the consumers to discover their worlds along with helping them avail exclusive deals across categories such as restaurants, spas, salons, movie halls, retail stores, amusement parks and more.
The key highlights of Nearbuy business and revenue model are as follows:
Nearbuy makes a contract with local stores and service-based businesses such as spas and salons.
Retailers promise to lower their rates in exchange for being featured on the website.
Nearbuy makes the majority of its profits by charging a fee of 2% to 25% of the sale price.
Retailers receive a substantial amount of revenue in exchange for providing such steep discounts on the website.
They often accept advertisements on the website, increasing the company’s revenue.
Nearbuy – Revenue and Growth
In terms of sales, FY18 was another low year for the firm. Though the company’s overall revenue rose by just 4.9% from INR 31.73 crore in FY17 to INR 33.28 crore in FY18, its basic turnover decreased by 16.4% from INR 28.22 crore to INR 23.58 crore. This simply suggests that the minuscule rise in sales was not due to the company’s main operations. Instead, it leaned on a 2.76X increase in other revenue, which increased from INR 3.52 crore to INR 9.7 crore.
Nearbuy.com claims to be present in more than 33 cities across 18+ categories. Furthermore, the company has more than 68,000 merchants to deal with across 100,000+ unique locations. Here’s some more growth highlights of the company, as reported on March 2019:
It has a monthly active users count of 3 million
It receives around 7.5 million monthly visits
Nearbuy app has been downloaded by 4.9 million users
The biggest obstacle, according to Ankur, the former CEO of Nearbuy, was to build the group, to which Nearbuy belongs. Users would mistakenly think of the business as a deal and discount platform, which is exactly what Groupon was. The mission of Nearbuy is to put the offline world online in a way that allows users to discover, buy, and save.
Simply informing consumers that they can purchase their favorite restaurants, spas, salons, entertainment zones, hotels, brands, and other services online and then walk in to consume them while saving money is a huge challenge in and of itself. Few people get it, but the majority do not. They don’t consider it a normal part of their lives.
“I often say this internally – our job at Nearbuy is not to grow the company, rather to build a completely new way for Indian consumers to explore the offline world which was a big task,” says Ankur.
Nearbuy expects revenue of INR 255.99 crore and a net profit of INR 17.73 crore by 2022-23. The estimated sales, according to Warikoo, are reasonable and vary from the Gross Merchandise Value (GMV, or total value of merchandise), which is much higher.
“We are capitalized and on a growth expansion mode. As long as we are unit economics positive, we can manage our fixed costs with the investment raised out of this merger. The plan is to grow this number to 250,000 in three years. We have a maximum available universe of roughly around 350,000 merchants” says Warikoo.
Warikoo claims that discretionary spending among Indian consumers has increased by more than doubling to 7% of individual income over the last decade.
Nearbuy – FAQs
What does Nearbuy do?
Nearbuy.com (Nearbuy India Private Limited) is India’s first hyper-local online platform, allowing consumers and local merchants to connect and interact. Nearbuy.com makes it possible for you to enjoy fine dining, unwind at world-class spas, or simply get to know your city better.
Who founded Nearbuy?
Nearbuy was founded by Ankur Warikoo,Ravi Shankar and Snehesh Mitra in 2015.
Which company owns Nearbuy?
Paytm owns Nearbuy.
How does Nearbuy make money?
Nearbuy did not charge its merchant anything for setup. Customers are only charged a fee for each purchase they make. Depending on the popularity and category, the commission ranges between 2% and 25%.
Which companies do Nearbuy compete with?
Top competitors of Nearbuy are Gmarket, Magicpin, Paytm, Grofers India Pvt, Shopee, Blibli, Amazon India, Swiggy, CashKaro, and LivingSocial.
Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by Paytm.
Love shopping right? Want things branded? Always want to follow the trend? Online shopping is a process of buying and selling which helps consumers to buy products with a lot of information. Shoppers are able to visit web stores from their homes itself. Isn’t it interesting?
Paytm Mall is an E-commerce platform. Paytm Mall’s electronics category is very popular on the website as it helps users in finding the latest mobiles and eletronic gadgets at the lowest prices. Paytm Mall app also provides its customers with the best deals, offers and cash backs. Starting from home appliances to laptops everything is available here. Read the Paytm Mall success story below to know more about the company.
Paytm Mall India is dedicated towards online shopping like any other e-commerce app or website. But it doesn’t deal with options like bill, recharge, payment, utility bills or any other money-related activities. Paytm is a word that everyone has come through. Apart from this many don’t know that the shopping section is also available along with the bill payment section. Rest there are no such differences.
Paytm Mall – Startup Story
In the beginning, Paytm dealt with money bills. A few years later the company launched a consumer shopping app for its users. It is inspired by the model of China’s largest business to consumer (B2C) retail platform. The aim was to create a combination of the mall and bazaar concept to Indian consumers. With the help of the new app, consumers will now be able to shop from 1.4 lakh sellers. The Paytm Mall app is available for Android and Apple, and is soon said to launch an upgraded version.
The Paytm founder Vijay Shekhar Sharma is currently an Indian billionaire businessman and an entrepreneur. He was born on 8th July in 1978 and is currently, 42 years old. He completed his education from Delhi College of Engineering, which is now known as Delhi Technological University. In 1997 he started a website but sold it two years later for $1 million.
In the year 2017, he was ranked as India’s youngest billionaire. He was also the one who was present in the list of Time magazine’s 100 most influential people in 2017. Besides Paytm Mall, the platform is also known for creating Paytm first game and the Paytm wallet.
Paytm Mall – Tagline, Slogan And Logo
The tagline of the company is ‘Ab Shopping ke liye bhi, Paytm Karo!‘
Paytm Mall logo
Paytm Mall – Business Model
The Paytm Mall business model is based how the platform is designed especially for Paytm merchants, vendors and sellers. The company charges a commission between 5 to 20% of the products sold. The company has moved away from the warehouse model and is leveraging its successful O2O (offline to online) model to save costs up to 35%.
With the help of the O2O model, the company has seen a lot of progress. The Paytm Mall’s business model is said to improve in the coming years. Here, customers can also scan codes using their smartphones to shop in their favourite shops. The company feels that these kind of things will help consumers more.
The Paytm Mall login and interface is easy to use, so the visitors can turn into buyers. The Paytm Mall customer care is also responsive and solves the customer queries immediately. While the Paytm mall delivery time is said to be anywhere between 2-8 days, The Paytm Mall return policy is also available for the customers who want to exchange their products.
The Paytm Mall revenue has doubled its in the year 2019. But after going through a loss in 2020 due to the pandemic, its again aiming towards increasing the revenue by three times in 2021. Paytm Mall spent Rs 2140 crores in 2019 to earn revenues of Rs 893 crores. Through brand promotions and shipping fees, the company earns a lot of money. Like Rs 66.7 crores and Rs 50.05 crores itself. The company also earned Rs 75.12 crores through mutual funds in the year 2019.
The company’s revenue is also earned through advertisements and Paytm Mall offers. But in the year 2018, the company spent Rs 944.21 crores and earned Rs 317.22 crores in the year 2019.
Paytm Mall – Funding And Investors
Paytm Mall funding has raised a total amount of $795 million in just 3 funding rounds.
The company is emerging as the preferred online to offline (O2O) platform across the country. It has seen more than 200% growth in the year 2019. To support and continue this growth the company has added more 200 people for the business in 2019. They are observing strong growth. And more improvement is required in the growth sector. Paytm Mall will consider getting listed on stock changes only after 2021 arrives.
Paytm Mall – Competitors
The top competitors of the company are Koovs.Com, Shopclues.Com and Snapdeal.
Koovs.Com is the topmost rival of Paytm Mall. The company was founded in 2009 in Haryana.
Shopclues.Com is one of the competitors of Paytm Mall. The company is headquartered in Haryana.
Snapdeal is also one of the competitors of Paytm Mall. It was founded in 2007 in New Delhi.
Paytm Mall – Future Goals
The company is aiming towards adding more workers by 2020. Along with technology, business and products, Paytm Mall is ensuring to its consumers that they will be getting a wide range of products and offers across online and offline stores.
Paytm Mall – Latest News
9th July 2021 – According to the media sources, some seniors Paytm executives have decided to quit before its anticipated $2.3 billion Initial Public Offering (IPO). This includes the president of Paytm Amit Nayyar and a few other executives, however the company is yet to find a replacement for the president.
Earlier in the year, Paytm Mall continued to face losses due to the covid 19 pandemic, however the company is looking to come out ahead with the help of its ‘End of Season Sale’ from June 25 to June 28 in 2021. The company will showcase best in class fashion collection from huge range of top international and national brands.
For the Paytm Mall sale today, the company has partnered with Axis Bank, Bank of Baroda, IndusInd Bank for exclusive Paytm cashback deals on all debit and credit card transactions. The Paytm Mall sale is offering discounts from 50% to 80% on more than three lakh products in various category. The platform provides big savings with the help of Paytm mall promo code, deals, Paytm mall coupons and Paytm mall cashback rewards, etc.
Paytm Mall is an E-commerce platform. It helps you to find the latest mobiles online at the lowest prices. The company also provides its customers with the best deals, offers and cash backs.
How does Paytm work?
Paytm customers can pay, receive and shop with just a smartphone at zero extra cost. Users can simply scan the recipient’s QR code or entering their mobile number in the ‘Pay’ option in the Paytm app to instantly pay virtually anyone with a smartphone and the Paytm app.
Who is the Founder of Paytm?
The Paytm owner is Vijay Shekhar Sharma
What is the benefit of Paytm?
Paytm offers saving details for wallet, postpaid, saved UPIs, merchant gift vouchers, Paytm payments bank details.
Is Paytm Mall safe?
Yes, Paytm Mall app is safe as Each and every transaction at Paytm Mall is securely.
Which country created Paytm?
India
Is Paytm a Chinese company?
PayTM is completely Indian, it lists Ant Financial, a Chinese bigwig, as its major investor.
How much is Paytm worth?
The Paytm valuation according to the company IPO will be Rs 16,000 crore.
What is the difference between Paytm mall and Paytm?
Paytm Mall is an online shopping e-commerce website where as paytm is an eCommerce payment system where the users can engage in financial transactions.
How can I create a paytm account?
After the paytm app download, the users will need documents like the GST certificate and the Address proof of the registered business.
How is Paytm Mall doing?
Paytm Mall is doing good as it hit a GMV of $10 billion in FY 2019 based on its O2O strategy.
