Alibaba is playing a frontal role in integrating services of Paytm Mall, BigBasket and XpressBees. The strategic move may help in increasing the revenue and productivity of all the three firms, in which Chinese e commerce giant Alibaba owns majority as well as minority stakes. Alibaba owns majority stake in Paytm Mall, while it owns minority stake in BigBasket and XpressBees. It led a $300 million round in the online grocery startup BigBasket barely a week ago.
As per Alibaba’s integration plan, Paytm Mall will sell Big Basket’s grocery products through an online store on its web as well as mobile app. Both companies will share revenue through mutual understanding. Paytm Mall’s COO Amit Sinha has also confirmed the move to the media.
“BigBasket has a complementary set of offerings for Paytm Mall. We want to work on a full basket rate and BigBasket will play a role in fulfillment,” Sinha said.
Paytm Mall, which is the third largest space in e-commerce space, makes most of its revenue from grocery and FMCG categories. Hence the integration of services with BigBasket may certainly augur well for this Gurgaon based company. BigBasket, which is the biggest player in online grocery space, may equally stand to benefit by selling its products on a popular platform like Paytm Mall.
Paytm’s integration of services with BigBasket is equally important from the context of Amazon and Flipkart’s ongoing push into the grocery space. Both e-commerce majors Flipkart and Amazon have already invested massively in this space to increase its revenue coffer.
XpressBees, meanwhile, will become one of the main logistic partners of Paytm Mall. This should help in bolstering the revenue of Pune based logistic firm. According to reports, XpressBees already handles 50% of Paytm’s shipment and this may very well reach to 60% following the integration exercise.