Paytm Mall to invest Rs 225 crore to strengthen logistics network

August 22, 2017: Paytm Mall is reportedly investing about Rs 225 crore in a bid to meet the high logistical requirements during the festive season.

Paytm Mall is payments major Paytm's online commerce arm which was hived off as a separate business this year. Paytm Mall has partnered with three large logistics players — Delhivery, Blue Dart and Xpressbees to expand its delivery reach to about 17,000 pin codes.

Apart from this, the company is also partnering with local delivery players to ensure same day and next day deliveries.

Amit Sinha, COO, Paytm Mall reportedly stated that the company is investing in technology as well as infrastructure expansion of logistics network to make sure there is a seamless process for a consumer to place an order and receive deliveries in a day. He also added this is being rolled out in about 25 cities but plans are afoot to quickly take it to other pin codes.

After raising Rs 1,282 crore from investors such as Alibaba and SAIF Partners, Paytm Mall has been taking multiple corrective actions to ensure better user experience. Starting from de-listing majority of its sellers, cutting ties with certain delivery partners to adding leading brands on its platform, the company has been trying to re-position the commerce business under Paytm Mall.

Paytm's investment comes at a time when many rivals like Amazon are making significant investments to facilitate faster deliveries.