Paytm is venturing into vehicle financing and automobile insurance after clocking 3X sales in online purchase of cars and bikes.
The New Delhi-NCR headquartered mobile Internet company, Paytm has shown a tremendous potential in the Automobile category by clocking a three-times growth in online purchases. The company claimed to contribute 5 per cent of Hero Electric’s pan India total monthly sales, after it sold over a thousand bikes last month. Order for two-wheelers, said the company in a statement, came from over 100 different cities spread across 18 states. Customers from as far as Tinsukia in Assam and Ranipet in Tamil Nadu purchased bikes from the company’s online portal.
In order to gain a strong hold in the automobile market, Paytm will launch the service of vehicle financing this month followed by offering insurance service in the coming months through third-party partners. Presently, Paytm has over 800 dealers already functioning in their network and local commerce is being used to build this category. The Paytm advantage for all prospective buyers lies in the expansive range of bikes on the platform, the lucrative customer offers and the hassle free buying experience. To leverage this advantage, Mahindra launched Gusto 125 model exclusively on Paytm in April.
“Overall 2-wheeler industry is around 16 million units (number of vehicles), and we are targetting at selling half a million bikes this year. By next quarter, we will have the largest network of dealers on our platform with an integrated solution for a customer looking to buy a bike. We also plan to do a few exclusive launches with OEMs like we did for Mahindra Gusto 125 last month,” said Renu Satti, Vice President, Paytm.
On the strategy towards the 4-wheeler category, she further added, “We aim at becoming the preferred one-stop solution for booking a car, getting financing and other related services like car insurance. We are speaking to the OEMs and third party partners to enable it on our platform.” The announcement of a triple growth in the cars and bikes segment showcases Paytm’s prowess in their local commerce approach. Currently, the brands that Paytm offers in the car and bike segment comprise Honda, Hyundai, Maruti Suzuki, Mahindra, Datsun and Hero, Yamaha, Mahindra respectively.
With current user base of more than 120 million, Paytm is head-quartered in New Delhi-NCR. The company’s investors include Ant Financials (AliPay), Alibaba Group, SAIF Partners, Sapphire Venture and Silicon Valley Bank.