M-Commerce

+Landscape
Paytm Karo
Presented by:
Akshay Dawer (232002)
Juli Gupta (232009)
Sushant Taneja (232011)

+ E-Commerce
E-Commerce deals with the buying and selling of goods and
services, or the transmitting of funds or data, over an electronic
platform, mainly the internet.
$ 22 Bn
2015P
34%
CAGR

$ 3.8 Bn
2009

Factors for this growth:

Rapid technology adoption
Favoured demographics
Indian governments ambitious Digital India project

+ E-Commerce
E-Commerce ecosystem
Online travel, ticketing, etc.

Ticketing for air, rail, bus, movie, events

Online retail

Retail products sold through online retail

Online portals classified

Deals purchased online

Online deals

Deals purchased online

Online marketplace

Platform where buyers and sellers interact

Online payments

Wallets, payment gateways

+
M-Commerce
Mobile commerce well known as Mcommerce is the subset of Ecommerce which includes all Ecommerce transactions by using
hand-held devices (a mobile handset (cell phone), PDA,
Smartphone and other emerging mobile equipment.) and wireless
network
Increasing use of devices such as
smartphones and tablets
Access to the internet through
broadband, 3G

Young India Will Become Dominant

Presence In E-Commerce
Young Indians (19-24yrs) are more comfortable with online
services e.g. FB and thus could potentially add up to 40M new
shoppers in next 3 years if we just take the Facebook users.

Sources: Accel estimates, NSSO, Facebook

+ Industry Analysis

Page Views

+ Industry Analysis

Avg. rating of Mobile apps

+ About PAYTM
Vision:
To make an Indian Internet conglomerate and not just an ecommerce company by putting the various pieces of the
puzzle together
25 Million Registered Users
100 Million Wallet users capturing 80% market share
among wallet users in India
A gross merchandise value (GMV) of $1.5 billion in 15
months
Over 90 per cent of overall transaction are pure-play
online transaction as consumers pay via wallet, credit or
debit card.
The app downloaded on various platforms has touched
the mark of 7 million
50,000 merchants and the platform is processing over
75 million orders a month

Hambrick and Fredricksons

Strategy Model
Arena
s

Staging

Economi
c logic

Differe
ntiation

Vehicle
s

ArenasWhere will we be active?

Product Categories

Recharg
es

Wallet
Paymen
t

Deals
and
Coupon
s

Wallet
to
Wallet

Market
Place

Wallet
to
Bank

Bus
Tickets

Utility
Bill
Payment
s

Market Segment: Mobile Commerce & E-Commerce

Geographical Segment: Currently in India but in 10 countries by 2020
Value Creation: Aims to overall commitment to financial inclusion
for the unbanked segment, modernize payment systems

VehiclesHow will we get there?

KEY PARTNERSHIPS

June14: Zovi
July 14: BookMyShow,
Homeshop18,MakeMyTrip
Nov 14: Uber
Dec 14: eBay, Jabong
and Groupon
Feb 15: First Cry
Apr 15: Taxi For Sure
and Meru
Apr 15: Pepper Tap
April 15 : PAYTM
partners with IRCTC

August 15 : PAYTM gets license

from RBI
September 15 : Gets into Financial
Business with partnering SBI General
insurance and Manappuram Finance
andMuthoot Fincorp
Oct 15 : Hotel Aggregators by
partnering with Goibibo, Yatra
Nov15 : Grocery Partnership with
Bangalore based company
Dec15 : O2O by acquiring Near.in
Jan16 : Planning to be become
Movie Ticketing Platform as well.

VehiclesHow will we get there?

ORGANIC MODE

INORGANIC MODE

2010: Mobile recharge

Invested $5 million in Jugnoo

platform
2012: Utility bill payments
2014: Launched mobile
wallet
2014: First mobile only
marketplace
2015: No commission model
launched
2015: PAYTM introduces Bus
Ticketing

Led $50 million round in Little

(Promoted by Zovis founder)
Undisclosed amount in ecommerce arm Gadgets 360
degree

Invested $10 million in data

analytics startup

DifferentiatorsHow will we win in

the marketplace?

The way they intend to differ is to offer a competing a wallet service

with low or zero transaction cost, capture essential services online
to build wallet size (recharge, phones, bus tickets) and partner
where there is an incumbent (uber)
They intend to partner with each and every e-commerce player as
a facilitator to their business rather as a competition in the same
marketplace
They are different all other players with No Inventory and acting
only Market Place with negotiation option.
They work on no-commission model from the merchants to attract
even the smallest of players to be on board and expand their
reach geographically.

StagingWhat will be our

speed and sequence of
moves?

2009
Paytm gets registered as
a subsidiary
of One97
Communications

2010

Paytm launches as an
online recharge portal

2011
Grows to become India's
biggest
recharge portal

2012
Postpaid Bill, Utility
(Electricity, Gas , DTH)
introduced

2013
RBI license for SemiClosed Wallet , 300,000
orders per day, Adopts
IMPS as payment method

2014
Mobile Wallet and Mobile
Only Shopping
marketplace , 22 million
registered users

2015
Bus & Rail ticketing
Financial services
Hotel aggregators

2016
Planning to be become
Movie Ticketing Platform
To Cross Visa + Master
Card transaction
10 Million merchants

2020
Aiming 1 Lakh Crore GMV
Expand geographically.
Be present in atleast 10
countries

Economic LogicHow will we

obtain our returns?

The strategy is to gain market share and be a dominant player in the

mobile payment market and earn revenue through partnerships and
transaction costs.
The major logic behind exponential growth through organic and
inorganic mode is to attract maximum customer base by offering
Convenience
Lure of free coupons
Cashbacks

+
Strategy Analysis
Strategy:
To be a dominant player in m-commerce and e-commerce market
providing array of services to facilitate transactions and services
related to it in India and abroad by connecting the entire e-commerce
ecosystem.
Consistency
In the recent
past, it does not
seem consistent
as they are
spreading their
wings in all
directions

Consonance
Compatibility
between
actions seems
to be high as
they are only
focusing on mcommerce and
e-commerce
only

Feasibility

Advantage

Their actions
seem to be
feasible as they
are following
the footsteps of
TaoBao
(Alibaba)

First mover in a
lot of a arenas
like online
recharge,
financial
services, wallet.

THANK
+
YOU!