In a bid to restructure its business, Paytm Mall has slowed down its rate of using monthly capital, often called ‘cash burn’ to Rs 40 crore against Rs 200 crore last year.
Cash burn is the rate at which the company uses up capital to run day-to-day operations and is commonly seen across consumer internet firms which raise a bulk of investor capital.
The Paytm Mall will focus on revenue generation by offering offline seller services like advertising and marketing, the company said.
“More than focusing on gross merchandise value, or GMV, we are focused on increasing revenue and the levers contributing towards it,” said Vijay Shekhar Sharma, CEO, Paytm.
The move comes as planned by the company since it started moving its target away from a discounting and cashback-led business to an online-to-offline strategy.
Paytm which was founded in 2010 by Vijay Shekhar Sharma with an aim to provide ease to the customers for doing digital payments across India.
However, Paytm Mall, a subsidy of Paytm, is used for shopping by the customers just like any other e-commerce website.