The company is reportedly shutting down its warehouses
The focus will now be on a hyperlocal business model
Paytm Mall is expecting to be EBITDA positive in two years
One 97 Communications-owned ecommerce platform Paytm Mall has been in troubled waters over the last one year. Though its growth has been slowed by senior exits, fraud allegations and losses, the company has received a lifeline with a $160 Mn investment by eBay for a 5.5% stake and has now changed its business model.
The company is reportedly shutting down its warehouses and adopting a hyperlocal model. In a media statement, the company said this is expected to help the company reduced costs associated with logistics. This will also bring down the company’s costs drastically as it would not need to own and operate its own warehouses.