The ecommerce arm of Paytm Group, Paytm Mall, is undergoing a corporate restructuring, purportedly, to focus on B2B and 020 plays.
The chief financial officer of Paytm Bank, Sudhanshu Jain, has been made the financial comptroller of the online business, according to the company executives.
Paytm has also absorbed Bharti Balakrishnan, the senior director with Alibaba Group, to oversee fashion, home and kitchen categories among others. Varun Gupta has been kicked upstairs to handle the groceries division.
On the other hand, senior vice presidents Saurabh Vashishtha and Amit Bagaria, who were in charge of marketing and customer acquisitions, have left the firm. Sirinivas Mothey has been appointed as the chief marketing officer.
Paytm has not been able to keep up with the loss leader strategies of its main competitors - Amazon and Flipkart. The firm is in a tight squeeze as a result of poor cash flow.
However, founder Vijay Shekhar Sharma denied reports claiming Paytm is mulling to exit B2C business.
Paytm Mall is targeting USD 2 billion in gross merchandise sales in 2019. The O2O strategy is a leaf out of Paytm’s largest investor Alibaba.
“We will focus on expanding on our O2O success,” he told Economic Times. “Small shops and sellers have unprecedented opportunity to expand online. Our O2O technology suite and mall as consumer destination will give them necessary support to expand to new consumer base,” he said.
“Majority of our business is expected to come from our O2O (delivery from local store), 15% wholesale and 35% from warehoused items,” Sharma said.
Paytm has hired Raghu Chakravarthi from the online grocery startup BigBasket to deploy the O2O tech stack.
Paytm Wholesale Commerce was incorporated in September. The filing said the objective of the company is to “carry on the business of buying, selling, reselling, importing, exporting...of goods and luxury brands on a wholesale and B2B basis”.
Paytm has raised about USD 653 million from Alibaba Group, SoftBank Group and SAIF Partners, among others. Paytm was valued at USD 1.9 billion in April last year, following a USD 445 million funding round led by Softbank, with participation from Alibaba Group.