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Paytm, the mobile commerce platform and e-commerce entity, has made a foray into the travel segment, launching a bus ticket marketplace. It has tied up with four travel aggregators, to cover a wide range of bus routes.
An affiliate of Alibaba, the China-based e-commerce giant, took a 25 per cent stake earlier this year in Paytm's owner, One97 Communications.
Noida-headquartered Paytm's latest move is part of its overall strategy to offer new categories and grow its gross merchandise value to $3-4 billion (Rs 19,000-25,500 crore) by the end of 2015.
Much like Alibaba, Paytm says it is building a complete system rather than remaining only a payment wallet company. The new categories are expected to shore up the transaction rates and consumer base, key for getting fresh investment.
Paytm founder Vijay Sekhar Sharma said, “The online travel category in India was estimated to be worth over $8 bn in 2014. We want to tap into this potential to give an enhanced experience to our users while booking their bus tickets.’’ The company plans to start signing up hotels and travel agents on the platform, he added. The online travel category is already crowded, with established entities such as MakeMyTrip, Expedia, Yatra, Cleartrip and Redbus.
Once the marketplace expands to encompass hotels and travel agents, the service providers will be able to put up their inventory with a do-it-yourself platform provided by Paytm. Consumers will be able to avail these services through the Paytm app. Paytm's investors include Ant Financials (AliPay), SAIF Partners, Sapphire Venture and Silicon Valley Bank.
