paytm case study

paytm pay tm Paytm is an Indian electronic payment payment and e-commerce brand based out of Delhi NCR, India. Launched in August 2010, 2010 ,[4] it is the consumer brand of  parent One97 Communicat Communications. ions. The name name is an acronym for "Payment Through Mobile. The company employs over 13,000 employees as of January 2017 and has 3 million offline offline merchants across India. It also operates the Paytm payment gateway and the Paytm Wallet.

Among other sources of funding, in 2015, Paytm became the first Indian company to receive funding from Chinese eCommerce company Alibaba, after it raised over $625 million at a valuation of $1.5 billion. The Alibaba Group was the biggest stakeholder in Paytm parent company One97 Communications..[5] Communications

History Background Paytm was founded and incubated by One97 Communications Limited in 2010 as a prepaid mobile recharge website. In an interview, its founder Vijay Shekhar Sharma related how he was inspired during a visit to China China,, when he saw vegetable vendors using their mobile phones to receive payments from some customers. This led to him establishing Paytm wallet in 2013 .[6] In 2013, the company launched Paytm Wallet, which became India's largest mobile payment service payment service platform with over 150 million wallets and 75 million Android based app downloads as of November 2016. [7] The surge in usage of the service was largely due to the demonetization of the 500 and 1000 rupee currency notes. After 8 November 2016, Paytm's transactions and profit increased significantly.Paytm has invested $5 million in auto rickshaw aggregator and hyperlocal delivery firm Jugnoo. Jugnoo. It has also acquired Delhi based consumer consumer behavior prediction platform Shifu for $8 million million and local [13] services startup Near.in for $2 million. million . Funding

In March 2015, Indian industrialist Ratan Tata made a personal investment in the firm. The same month, the company received a $575 million investment from Alibaba Group, after Ant Financial Services Group an Alibaba Group

affiliate, took a 25% stake in One97 as part of a strategic agreement. Paytm  borrowed 300cr from ICICI Bank in March 2016 as working capital. As May 18, 2017 Softbank invested $1.4 billion in the company, and as one of the Largest Funding in India's Ecosystem which valued paytm from $4.8 B to $8 B. It was Softbank's single largest investment in India to date. Paytm had  previously raised $500 million from Alibaba and Ant Financial.

Payments bank In 2015 Paytm received a license from Reserve Bank of India to start one of India's first payments banks, called "Paytm Payments Bank Limited". At the time, the bank intended to use Paytm’s existing user base for offering new services, including debit cards, savings accounts, online banking and transfers, to enable a cashless economy. The payments bank would be a separate entity in which the founder Vijay Shekhar Sharma will hold 51%, One97 Communications will hold 39% and 10% will be held by a subsidiary of One97 and Sharma. Paytm Payments Bank launched operations on May 23, 2017, initially with invite only system. From August 31, 2017, the services of the bank were open to everyone through Paytm Android and iOS app.

Segmentation Paytm has segmented the market into two i. People owning smart phones ii. People not owning smart phones Their segment chosen for business is “People with smart phones looking for cashless payment transactions ”.

Transactions like 1. Mobile recharge 2. DTH 3. Data 4. Landline bill payment 5. Data card bill payment 6. Broadband bill payment 7. Electricity bill payment 8. Mobile bill payment 9. Gas bill payment 10.Water bill payment 11.Metro card recharge 12.Insurance Premium payment 13.Amusement park Ticket 14.Book Hotel Ticket 15.Book Movie Ticket 16.Book Bus Ticket 17.Book flight Ticket 18.Online Shopping 19.Transfer money

TARGET MARKET Paytm has further gone and targeted General Public with smart phones. Young and Middle aged people. Businesses. Urban tier1 tier2 cities. o Paytm has targeted the entire set of people owning smart phones majorly young and middle aged people who form 70% of India’ s population. o Secondly paytm has targeted businesses to avail their service and give the  benefit to both the public and business by ways of easy hassle free  payments solving issues of perfect change and carrying cash in large denominations or small denominations for change. o Lastly they have targeted tier1 and 2 cities primarily as population using smart phones is maximum concentrated and can avail the services from  businesses at a better scale.    

POSITIONING Paytm has positioned itself in such a way where in anyone and everyone who own smart phones can use it as an alternative for cash in daily needs at every step. College students/ youth. Working mothers. Bread earners.   

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Paytm has provided the ease of paying all your bills, booking tickets and lot more at your fingertips to all the working people who don’t have the time to go out specially to just do such petty jobs which are very important too. Also for the youth the ease of not handling cash, threat of losing cash and  paying effective change to stores and recharge vendors receiving pocket money from parents.

Paytm has positioned itself among businesses like  Rickshaw-wala. Ola, Uber cabs. General Stores. Roadside tapri and gaadas. Exclusive showrooms. Restraunts. Corporates.       