Paytm is India’s largest digital payments application. It is one of those companies which has transformed the way India pays. Demonetization has helped the company a lot as well. Although it had its fair share of controversies when the Paytm fraud cases were going on. RBI also had imposed a ban on the Paytm bank which has now been revoked.
That said, there is some stunning development in the tech world of India today. Zomato, the restaurant finder/online food ordering company has joined hands with Paytm. Now, this partnership might sound delusional right now but absolutely makes sense. Paytm will allow its users to order food from its application and that will happen with the help of Zomato.
Renu Satti, Senior Vice President of Paytm said that the partnership with Zomato and the feature of ordering food is extremely valuable to the company. Zomato has entered this partnership with to outdo Swiggy for a start but it is also in this tie up for increasing its customer range. The fact that Paytm has users mostly in the mid-tier cities that is tier 2 and tier 3 cities which is where Zomato is trying to enter. Paytm being one of the most used applications in the country is also one of the reasons why Zomato has decided to partner.
Mohit Gupta, CEO of Zomato said that the company is very excited to partner with Paytm and integrate their online food delivery system with their multipurpose application. The intentions were made clear by Mohit when he said that it will now cater to a much larger user base. Apart from this, it will also change the experience of ordering food from Zomato.
Zomato achieved an astonishing $28 million orders in the final month of December. It has around eighty thousand restaurants under its roof which are spread across one hundred cities in India. The delivery fleet is also done over 1.5 lakh last mile deliveries. Food-tech in India is going to grow a lot in India. And the investments that happened in the last year or so are subject to that. The startups in this business received more than $1.5 billion in investments last year while Swiggy raised a whopping $1.3 billion while Zomato scrapped to $410 billion.
That said, Paytm has sensed this and partnered with Zomato as soon as possible. Paytm is also working with BHIM UPI and is working on launching Paytm BHIM UPI for offline transactions. There is around 9.5 million offline merchant base which accepts Paytm BHIM UPI for various reasons.