Paytm to launch online gaming content on its platform to take on Amazon

Bringing out the big guns to take on Amazon India, the Vijay Shekhar Sharma-led online mobile wallet major Paytm might soon launch video content on its platform, thanks to its new venture with the Alibaba Group-owned AGTech Holdings Limited called Gamepind, a gaming and entertainment platform.

Entertainment has been one of the strong suits of Amazon globally. In India, too, online video content streamed by Amazon India has helped the company gain around 10 million ‘Prime’ members and counting, according to market estimates. Paytm, which has over 300 million customers who use its various financial and payment services, plans to bring more people on to its platform through gaming and entertainment content.

“When the joint venture was announced last year, Alibaba had indicated this particular company would be involved in gaming as well as entertainment. Entertainment will complete the ecosystem for Paytm and give it that last boost to gain the maximum number of users,” said a senior analyst with an international consultancy firm. 

Globally, the Alibaba Group has made a major play in the entertainment industry with its production house that has made a number of films in China as well as in Hollywood. 

Last year, the Chinese technology giant announced its first formal joint venture with Paytm. While Paytm holds a 55 per cent stake, the rest is held by Alibaba’s Hong Kong-based private company, AGTech Media.

The Alibaba Group had called it the ‘first significant strategic international expansion’. With an initial investment of $8.8 million, Paytm has entered the online gaming and content business with AGTech Media. The Hong Kong-based company will be investing $7.2 million. For the joint venture, Paytm has set up a new company, Paytm Group, under Paytm Holding.

“The joint venture company shall be engaged in the development and operation of various platforms, including website, mobile applications or other distribution channels, to develop and publish a variety of products for Indian customers such as mobile games and other user engagement activities in India,” Alibaba had said in a filing. The firm while launching Gamepind, available both through the Paytm app as well as an independent app, said it aimed to tap into the significant potential of the fast-growing mobile entertainment market in the country.

Gamepind complements the Paytm ecosystem by enhancing its customer experience through a rich portfolio of games and entertainment content. 

“As AGTech’s first strategic international expansion, this joint venture lays the foundation for future collaborations as the company continues to globalise its business by strategically working with leading local partners in overseas markets,” said John Sun, chairman and chief executive of AGTech. Paytm, which now has SoftBank Group as its biggest shareholder and backer, has been on a major expansion spree. 

The company’s online marketplace subsidiary Paytm Mall is expanding its grocery play to take on Amazon as well as Flipkart. 

The latest entrant in the e-commerce race, Paytm Mall hopes to earn a gross merchandise value (GMV) of more than $3 billion from the online grocery segment.  “Grocery is the fastest growing category in e-commerce. At the present level around 25 per cent of the GMV at Paytm Mall comes from grocery. This will go up to 40 per cent,” Sharma had said recently.

The Paytm Ecosystem

• Mobile wallet 
• Utilities and bill payments 
• Online movie and events ticketing 
• Travel and hotel booking 
• Gold buying 
• Payments Bank 
• Mobile gaming 
• Online marketplace