Paytm Mall said on Monday that with its unique O2O (offline to online) model, it has doubled its revenue in FY19 compared to the last financial year. Also Read - Paytm Holi Sale 2021: Check Amazing Discounts On iPhone, Samsung and Oppo Smartphones
The company said that it has reduced its cost by 50 per cent in the same period. Also Read - Paytm Holi Sale 2021: You Need to Do This to Avail Up To 70 per cent Off, Cashback; Check Offers
In a statement, Paytm Mall attributed this success to its focus on becoming a lean and operationally profitable organisation, while reducing cost overheads at the same time. The company’s focus is on fashion, home, consumer electronics and mobiles. Also Read - Paytm Mall Moves Operation From Noida to Bengaluru, to Hire 300 Workers
The company said that it has moved away from the warehouse model and is leveraging its successful O2O model to save costs up to 35 per cent.
Srinivas Mothey, senior vice-president at Paytm, said, “We have incredibly turned around our business model using O2O. Our multi-pronged strategy has resulted in exciting results for us. Now, every order that we ship is profitable and will become EBITDA positive by FY22.
“We will continue to invest in the business for profitable expansion and not for unreasonable discounts. This fiscal year, we are focused on increasing our revenue 3x, while reducing the cost by another 60 per cent.”