Alibaba-backed payment platform, Paytm is set to enter the online grocery market under a new vertical that will be headquartered in Bengaluru. The company is floating a new app called Zip to connect users to both local offline as well as online grocers. A beta version of the new app is to be launched tonight.
Through affiliate Ant Finacial Services, Alibaba is infusing $575 million in Paytm, and Paytm plans to use a part of the fresh funding in its new grocery etailing. Paytm’s grocery segment with a team of 20 members is likely to begin operations soon. It will be looking at about 10,000 transactions in the grocery space in the first few months.
“We want to build the whole ecosystem. We have been working on this for the past four to five months and the beta run of our separate app, for grocery business, is underway,” said Vijay Shekhar Sharma, founder and chief executive of One97 Communications, which runs Paytm.
Other eCommerce firms are also working on aggressive plans to tap this category. Online marketplace, Amazon launched KiranaNow, Snapdeal announced partnership with Godrej Nature’s Basket to sell online groceries and Flipkart is reportedly going to make a foray into grocery market in later half of this year. In November 2014, Reliance Industries retail arm Reliance Retail had launched a website–Reliance FreshDirect to deliver grocery products in some neighborhoods of Mumbai.
Tata Group has also launched a grocery eCommerce platform,My247market.com, which is owned and operated by Fiora Hypermarket Ltd., which is the retail arm of Trent Ltd. Trent operates retail stores under the brands Westside and Landmark.
Some other major players in this niche include BigBasket.com, EkStop.com, LocalBanya.com, AaramShop.com and AtMyDoorSteps.com among other who are already dealing in the grocery space.