Indian ecommerce website Paytm has entered into an multi-level partnership with the largest mobile advertising network InMobi and expect a growth of INR 3,200 crore in revenues in the coming 12 months. According to the CEO and co-founder of Paytm’s parent concern, One97 Communications, Vijay Shekhar Sharma, through this association they are looking to fetch nearly 500 million gross merchandise value (GMV) in the coming 12 months, taking their target closing to this current fiscal year with $3-4 billion in GMV behind their larger competitor, Indian marketplace biggie, Flipkart a GMV closing of $10-12 billion within the same tenure.
Inmobi founder and CEO Naveen Tewari also sounded similar enthusiasm about this one of a kind ushering partnership between the two online firms that looks to combine the power of ‘m-commerce’ with apps based ‘d-commerce’ platform.
InMobi signed a pact with US based marketplace giant Amazon’s Indian unit last week, where the mobile advertising company also promised similar functionalities for selling Amazon India‘s products through their advertising network.
As the saying goes, there’s something for everyone, this partnership isn’t exception to that either with a win-win situation for everyone involved. Paytm and Inmobi will have to pay each other a fee for using each others’ platform, which will be reflected in the higher commission that the merchants may have to pay for reaching out to a larger consumer community. It puts each player in a super beneficial position as is expected of a tactical commercial collaboration.
According to Mr. Sharma, with this tie up, the transaction rates and GMV is expected to see a sharp spike with 60,000 registered merchants on Paytm platform, who were earlier able to reach only the consumers in the Paytm ecosystem, with this newly forged partnership will now be able to reach 2-3 times more consumers than the earlier number to around 120 million mobile internet user community in general in India through InMobi’s “Miip” d-commerce platform. In addition, a new digital store, powered by InMobi’s “Miip”, will also be setup on the Paytm app which will highlight latest apps and games for smartphones that are free to download and install from Google Play Store or Apple App Store which in turn, will increase the hits and popularity of the Paytm app for providing a holistic experience and convenience to its visitors and customers.
This partnership would give InMobi more contextual advertising opportunities on their platform with more merchants coupled with more quality products, from Paytm’s platform, onboard.
Merchants registered on Paytm’s platform will have the opportunity to expand their business sphere even further. They can reach out to mobile internet users through InMobi’s “Miip”.
According to Mr. Tiwari, the partnership will give more options to the consumers for buying a product with the convenience and feel of window shopping through Miip’s discovery platform to look onto more than 15 million stock keeping units (SKUs) listed by merchants on Paytm’s marketplace, without the necessity visit their site or shopping app.
We know that all the online marketplaces are trying to extend the reach of their merchants to a larger customer base and subsequently boost their revenues through it. Flipkart’s acquisition of AdiQuity is also proof to this. The Paytm-InMobi will be another benchmark to these kind of tie-ups to provide better user experiences.
Editor team is specialized in introducing the marketplace content targeting the Indian online sellers. They plan and coordinate to bring the appealing content for the small businesses on how to partner with the e-commerce sites like Amazon and Flipkart and strategies for improving their online business.
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