paytm

Paytm is an Indian electronic payment and e-commerce brand based out of

Delhi NCR, India. Launched in August 2010, it is the consumer brand of parent
One97 Communications. The name is an acronym for "Payment Through Mobile.
The company employs over 13,000 employees as of January 2017 and has 3
million 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.

History
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 when he saw
vegetable vendors using their mobile phones to receive payments from some
customers. This led to him establishing Paytm wallet in 2013.
In 2013, the company launched Paytm Wallet, which became India's
largest mobile payment service platform with over 150 million wallets and 75
million Android based app downloads as of November 2016. 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. It has also acquired Delhi-based
consumer behavior prediction platform Shifu for $8 million and local services
startup Near.in for $2 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:
Mobile recharge, DTH, Data, Landline bill payment, Data card bill payment,
Broadband bill payment, Electricity bill payment, Mobile bill payment, Gas bill
payment, Water bill payment, Metro card recharge, Insurance Premium
payment, Amusement park Ticket, Book Hotel Ticket, Book Movie Ticket,
Book Bus Ticket, Book flight Ticket, Online Shopping, Transfer money.

TARGET MARKET

 Paytm has further gone and targeted

 Public with smart phones.
 Young and Middle age people.
 Businesses.
 Urban tier1 tier2 cities.
 Paytm has targeted the entire set of people owning smart phones majorly
young and middle-aged people who form 70% of India’s population.
 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.
 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.

 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.
 Restaurants.
 Corporates.