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Paytm forays into grocery delivery segment in Bengaluru

Alibaba-backed mobile marketplace Paytm has forayed into the grocery delivery space. The company will initially start with Bengaluru and will roll out in Delhi by May this year, reports YourStory.

At present, the company is partnering with retailers in Bengaluru and will soon start delivery in some parts of the city. “We are testing the grocery space as we see an immense potential,” Vijay Shekhar Sharma, CEO, Paytm, told YourStory. Paytm has also partnered with third party logistics partner in Bengaluru.

Alibaba-backed mobile marketplace Paytm has forayed into the grocery delivery space. The company will initially start with Bengaluru and will roll out in Delhi by May this year, reports YourStory.

At present, the company is partnering with retailers in Bengaluru and will soon start delivery in some parts of the city. “We are testing the grocery space as we see an immense potential,” Vijay Shekhar Sharma, CEO, Paytm, told YourStory. Paytm has also partnered with third party logistics partner in Bengaluru.

“We have been working on the grocery vertical for the past four months and the beta run of our separate app for grocery will be out in a few weeks,” Sharma told YourStory. The company plans to reach 10,000 transactions in the grocery space in the first few months. Paytm has named its upcoming grocery app – Zip. new app called Zip which will connect local offline and online grocers. A beta version of the Zip app will be launched later today.

According to the report, the grocery segment will drive more value-based transactions for Paytm which largely resorts to small ticket size. While grocery segment usually has an average transaction size of Rs 500 to Rs 800, recharge has a lower average transaction size (Rs 100- 300).

Over the past two months, hyper-local ventures have raised more than $60 million from various venture capitalists. Gurgaon-based Grofers snapped up $45 million (in two rounds) while PepperTap secured $12 million across two rounds.

Bengaluru-based Zopnow had already raised a round this month and is in advance talks to raise another round soon. Besides Paytm, e-commerce majors Snapdeal and Flipkart are also gearing up to get into the grocery space. While Amazon recently launched an express delivery platform under a ‘Kirana Now’ service in partnership with local  retailers, Snapdeal tied up with gourmet food retailer Godrej Nature’s Basket.

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