PayTM to focus on movie ticket and travel business as its next growth avenue

PayTM, one of the largest ecommerce players in India, is focusing on two promising industry segments i.e. movie ticket and travel booking as its next growth avenue. The firm competes with MakeMyTrip in the travel booking segment, and is expected to face stiff competition from the player after it acquired GoIbibo for for ~$2 billion last month. The company is already selling 1 million tickets monthly as against MakeMyTrip’s average of 1.2 million trades per month. In the movie ticket business, BookMyShow is the primary competitor with monthly ticket bookings more than eight times of PayTM.

The company’s strategy is to offer cashback for acquiring customers, and retaining the same. It will also launch a slew of financial services to retain the customers, meanwhile the firm launches its payment bank.

The firm’s revenue share is present in a number of industry segments with a broad revenue share breakup. Its Online-to-offline (O2O) business, using paytm wallet for offline payment at retail stores, and utility payment business together account for 20% of gross sales, phone recharge and online marketplace account for 20% and 40% of gross sales respectively. Rest comes from its tie-up with third party merchants such as Uber and IRCTS.