PayTM parent company One97 enters e grocery space. One97 Communication Ltd is the leading mobile internet company from India. The company offers digital goods and services to mobile consumers under PayTM brand.
One97 has launched a new app called Zip to connect users to both local offline and online grocers. Zip is the second consumer facing app from One97. Already beta version of the app has been launched in the market. The services of the Zip app have been confined to Bengaluru City in the initial phase.
An exclusive 20 member business wing is in charge of the app launch of Zip is stationed in Bengaluru. This marks new entry of big funded venture in the e-grocery space. The market is currently dominated by a few handful of regional and city based companies.
Zip will function as an affiliate plus payment system for other websites. One97 is pinning its hopes on the online grocery shopping crowd. They are in talks with number of grocery e commerce players for future partnerships.
One97 was found in 2000 by Vijay Shekhar Sharma. He is the Founder and Chief Executive Officer of the company. He graduated as Bachelor of Engineering in Electronics and Communication from Delhi College of Engineering in 1998. He started his career in 1998 as Business Development Executive in RiverRun Software Group. Vijay worked in the company for a year and moved as Technical Team Member in Intersolutions India Pvt Ltd in 1999. He joined as Tech Head for India Today Group Online in 1999. In 2000 he became Chief Technology Officer of Startec Global Systems Inc, he was instrumental in starting development center for the company.
In 2000 he founded One97 Communications Ltd, of which PayTM mobile wallet company is associated. He also founded venture capital fund called One97 Mobility Fund in 2010 of which he is the Managing Partner.
The company received their first venture funding in 2008 for $25 million from SAIF Partners. One97 communications received undisclosed amount as funding in 2009 from SAIF Partners, Intel Capital and Silicon Valley Bank. In 2011 they received $10 million as venture funding from Sapphire Ventures.
Online e-Grocery segment is witnessing lot of actions nowadays. Many startups have raised funding recently. Grofers raised $35 million from Tiger Global and Sequoia Capital. PepperTap secured $10 million from SAIF Partners and Sequoia Capital and Zopnow also raised $10 million from Dragoneer, Accel Partners, Qualcomm Ventures and Times Internet.
Major players BigBasket.com, AaramShop and MyGrahak are already been funded heavily. Recently Mumbai based EkStop was acquired by Godrej group company Nature’s Basket. Godrej is thinking on the expansion into this segment and may pursue it furiously. Online major Amazon is working on a pilot program by tying up with neighbourhood grocers in Bengaluru by connecting buyers to local grocers.