Mobile Payments and commerce platform Paytm has set the plans rolling to expand its fashion category with an investment of Rs 200 crore. This Alibaba-backed portal by helping small and medium businesses as well as bigger brands set up 'online shops' on its platform.
The digital payment company, which forayed into eCommerce in April last year, aims to facilitate monthly sales of about 2.1 crore items through its platform by the end of this fiscal in the fashion category.
"The fashion and apparels category has grown to more than four times year-on-year for us. Orders have leapfrogged from 3,00,000 a month to about 2 million orders and we see this growing to over 2 crore by end of the fiscal," Paytm Vice President Sudhanshu Gupta told PTI.
He added that the category is already a significant contributor to the company's revenues but declined to share specific numbers.
"We already have significant share of online business for some of our partner brands. We also work very closely with brands like Unilever, L'oreal, Only, Vero Moda, Jack & Jones and more," he said.
Currently, 30 per cent of the sales volume comes from the branded players, while the remaining comes from the unstructured segment.
"We will continue to add more brands as well as players from the unorganised sector to enable them to market their products to consumers. Paytm has set aside a budget of Rs 200 crore exclusively for that objective," Gupta said.
Also, the platform is planning to invest an estimated $90 Mn (INR 600 Cr) on marketing for this financial year, to become a household name. Paytm has launched a new TV Commercial (TVC) highlighting Paytm wallet’s multiple uses to further strengthen its core messaging ‘Paytm Karo’ (just use Paytm).