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Paytm Plans Strategic Investment In A Logistics Company

Bhanu Prakash

   

After the first funding of around $200 million in the Paytm’s online platform, Alibaba is now enforcing some new logistics for Paytm to have smoother and hassle-free deliveries of products. 

The company has finalised the deal through which Paytm will have to entirely buy the logistics company or have a partnership with them. According to a report by Business Standard, Paytm is currently having discussions with two popular Indian delivery firms Expressbees Logistics and Delhivery and have an exclusive partnership with them.

Alibaba has already announced its 40% stake in Paytm and hence, it is taking decisions of getting newer delivery firms to have their set up with Paytm to ensure that the huge capital that is spent on Paytm to turn out profitable to both company and its consumers.

This decision by Paytm is taken considering the delivery channels to spread all across the country and make sure there is timely delivery of products to the customers. There are greater possibilities of Paytm stretching its delivery locations as making most of the products at a lesser delivery time.

Alibaba, a giant Chinese E-commerce portal is taking some strategic decisions carrying out different plans to capture the Indian market and making a greater impact on the consumers. Logistics is something that is important to an e-commerce set up and hence, Alibaba has taken this move by allowing Paytm to buy the new logistics and have a good delivery set up.

Once the deal goes through, you can expect significant changes in the e-commerce market especially when it comes to logistics. One of the important things would be a considerable improvement in the delivery systems all across the country. The Paytm users will be now be experiencing a major change after they place an order and get greater benefits through fast delivery from the new logistics company.

If you recollect, Snapdeal had also had done similar move by purchasing Gojavas for improving the logistics. Another leading e-commerce giant, Flipkart is already having its own logistics arm, e-kart through which it delivers the products purchased at their parent company Flipkart.

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