The digital payment company, Paytm, backed by Alibaba has announced that it will soon spend Rs 200 crore to expand its fashion category by helping the small and medium businesses as well as bigger brands to set up ‘online shops’ on its platform.
“We will continue to add more brands as well as players from the unorganised sector to enable them to market their products to consumers. Paytm has set aside a budget of Rs 200 crore exclusively for that objective,” Gupta told.
The digital payment company, which forayed into e-Commerce in April last year, aims to facilitate monthly sales of about 2.1 crore items through its platform by the end of this fiscal in the fashion category. ” Orders have leapfrogged from 3,00,000 a month to about 2 million orders and we see this growing to over 2 crore by end of the fiscal,” Paytm Vice President Sudhanshu Gupta informed PTI while elaborating on the investment ideals.
He further added that the category already is a significant contributor to the company’s revenues but declined to share specific numbers for the same.
“We already have significant share of online business for some of our partner brands. We also work very closely with brands like Unilever BSE 0.04 %, L’oreal , Only , Vero Moda , Jack & Jones and more,” he mentioned.
Currently, 30 per cent of the sales volume comes from the branded players, while the remaining comes from the unstructured segment.