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Paytm to be the title sponsor for all BCCI matches for Four Years (till 2019)

Paytm to be the title sponsor for all BCCI matches for Four Years (till 2019) | Zookrt  

It’s happening: Flipkart to be app-only from September!
Author Shweta Singh

IOS kept you posted about each phase of Myntra’s transition from desktop to app-only platform. We broke the news last December about Myntra’s resolution to go mobile-only in 2015, the false alarm, final leap of faith, drop in sales, technical glitches and customers’ reaction.

Now it’s time to trace Flipkart’s journey towards becoming app-only store. Yes, you heard it right! The biggest ecommerce giant, Flipkart is most likely to shut its desktop site for good by September.
The plan

There is no official word on this but sources close to the development have confirmed that the online marketplace will adopt mobile-only strategy in three months. This ETRetail news report states that Flipkart’s Chief Product Officer, Punit Soni informed its employees in a meeting that from September the company will operate only through the app.

Flipkart had made its intentions to focus on mobile platform known by phasing out desktop ads and acquiring mobile centric companies. But it still has managed to surprise everyone since Myntra’s app-only decision didn’t get a good response.
Believers

Apart from the marketplace team, some experts also believe that mobile-only strategy will offer better shopping experience. For instance Ravi Gururaj, Chairman- Nasscom Product Council revealed to ETRetail that apps allow companies to tailor customer’s shopping experience, secure authentication, instant payments and image search features besides many others.

He added, “All of these capabilities are simply not available or easy to implement on landlocked’ desktops. Large platform players will realize the benefits of adopting a less-is-more approach since ewer internal IT systems need to be built, tested, supported and maintained in the future.”
Non-believers

Flipkart shoppers aren’t happy at all with this announcement. Many have commented that if Flipkart turns an exclusive app store, they will stop buying from it and will instead shop from Amazon and Snapdeal. The reasons cited range from bad mobile internet connectivity, small user-interface, inability to read features & reviews properly, discomfort in comparing and opening multiple tabs on phone. Many also pointed out that apps are mere means to collect personal information and buying habits of consumers and make more money by cashing on it. Others expressed concern about this leading to monopoly since only few marketplaces will operate on desktops.
Wise move?

Definitely no! Let’s assume that Myntra is making more profit (although the figures state the opposite) after becoming app-only, which encouraged Flipkart to follow the same model. But let’s not forget that Myntra is a fashion portal whereas Flipkart is a marketplace that sells almost everything. While fashion purchases can be an impulse buy through mobile apps. Home appliances, tech products, electronics, home decor etc that the marketplace sells is always a planned need-based buying where customers compare, research and read a lot before buying. The same is convenient only on a desktop site, not on apps.

Sanjay Swamy, a partner of AngelPrime seed fund firm said, “Typing on a smartphone is sub-optimal. I think some experience would be lost, but e-commerce players believe app-only is the way forward.” This is exactly how etailers like Myntra and Flipkart think, which makes it even more disappointing. How can compromising a customer’s shopping experience and overlooking a sizeable percentage of people who prefer desktop site for reducing cost be a wise move?

Restricting users can never be a good idea. But the jury is still out on this one. We will know for sure when Flipkart takes the leap of faith too like Myntra.

Alibaba looking to buy additional 20% stake in Paytm
Author Shweta Singh

Rumour has it that China’s Alibaba is negotiating a new deal with Paytm on the lines of picking up more stake in the Indian ecommerce company. The Chinese ecommerce giant will invest over $600 million (Rs 4,000 crore) in exchange of an additional 20% stake.
The Old and New Deal

In the beginning of 2015, Ant Financial that falls under Alibaba Group umbrella, had bought 25% stake in Paytm by investing $575 million in One97 Communications (that owns Paytm). According to this ET report, the initial investment was to be discharged in two installments. Out of the total $575 million, the first lot of funds that were given to Paytm was worth $200 million. The remaining was to be released later.

But as per the new deal that’s under discussion, instead of the outstanding tranche of $375 million, Alibaba will invest a total of $600 million which will get them additional 20% stake. And Ant Financial will reduce their stake by 5%, bringing it down to 20% from the earlier 25%. Making Alibaba’s total stake in Paytm 40%

If it materializes then Paytm’s valuation would jump from $1-billion to $3.7 billion (Rs 23,600 crore). This is a staggering 270% rise in valuation, that too within a year.
What Alibaba and Paytm stand to gain

Besides the obvious rise in valuation, Alibaba and Paytm both will be one step closer to their main goal with this fresh funding and stake rise.

Alibaba’s aim is to be a global ecommerce leader and India is a very lucrative market for the company. It is through Paytm that the Chinese ecommerce player is looking to gradually make inroads in India.

As for Paytm, the transition from being just an online recharge platform to a huge online marketplace was made possible largely if not completely through their association with Alibaba. Today the company is a threat to all the Indian ecommerce leaders like Flipkart, Snapdeal and Amazon.

40% stake will make Alibaba the largest shareholder in Paytm, but the founder, Vijay Sharma’s individual share is still more than owners of Flipkart and Snapdeal share in their respective companies.

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