11.8 C
New York
Wednesday, December 2, 2020
Home Stories Will Paytm Mall mirror Udaan’s strategy in B2B commerce?

Will Paytm Mall mirror Udaan’s strategy in B2B commerce?

B2B e-commerce has been a big opportunity for tech-enabled startups in India. However, early entrants including IndiaMart, Industrybuying, Tolexo, and Wydr have been unable to make big with marketplace approach. On contrary, the growth of Bengaluru-based Udaan has been phenomenal and it can be gauged from its massive fundraising and Unicorn status.

Sensing a big opportunity in wholesale space, Paytm Mall has launched a B2B buying app for merchants. Currently, the app offers four categories including Women’s fashion, men’s footwear, personal grooming and gold coins and promises door to door shipping.

The wholesale app also lets merchants become a distributor for headphone and speaker brand – Bluedio and Bozlun. Besides the above four categories, it’s also expected to enable small merchants, including kirana stores, to buy stock from Paytm Mall.

Since Paytm has a strong sourcing capability in China because of Alibaba, merchants will be able to bypass middlemen and brokers that eat up their margin.

Paytm is a fintech firm by DNA and its bigger game is to woo merchants through a credit facility. Access to credit has been a major headache for small retailers. They typically end up borrowing working capital from local lenders who charge exorbitantly.

On the lines of Udaan, Paytm intends to be a platform offering everything – sourcing, logistics (via third parties) and credit access. While Paytm Mall commits credit facility to buyers, it’s yet to be clear whether Paytm would lend on itself or leverage third-party lenders (NBFCs and banks).

Udaan lends on its own book and keeps inventory in large warehouses owned by companies directly owned by it. If Paytm does all these, Udaan would be the primary competitor.

Within two years of its operations, Udaan has been recording stellar growth. At present, it has about 1,80,000 sellers and buyers on the platform. Entrackr’s sources estimate that the platform works with manufacturers in about 130 cities and delivering to buyers across 1,000 cities.

Despite the decent amount of actions in B2B sourcing and lending segments, only a handful of startups have been able to solve sellers’ supply issue as well as credit requirement. Majority of lending platforms focus on facilitating a loan to mid-sized sellers with decent credit record.

Source: Entrackr

To Read Our Daily News Updates, Please visit Inventiva or Subscribe Our Newsletter & Push.


Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

- Advertisment -

Most Popular

Online Rummy Cash Games vs Tournaments: Pros and Cons

Rummy is a card game that’s packed with fun and thrill and since it hit the internet, things have looked up for this century...

Countries with the Highest Family Income and Single Tax Rates

On the off chance that you could live in any other country on the planet, wouldn't you need to know about the potential income...

The Ambani Family now the Richest Family in Asia with twice the wealth of the Second Richest Family in Asia, even as Mukesh Ambani...

Yes, the Ambanis are now the most affluent family in Asia with twice the wealth of the second richest family - the Kwok family...

New Zealand symbolically declares climate emergency

Joining more than 30 countries, New Zealand on Wednesday took the symbolic step of declaring a climate emergency. Lawmakers voted 76-43 in favour of the...

Recent Comments

%d bloggers like this: