Paytm eyes five-fold growth in gold sales on Dhanteras, Diwali

Mobile wallet company Paytm expects a five-fold growth in gold sales through its platform during Dhanteras and Diwali this year.

Paytm, which had partnered with gold refiner MMTC-PAMP to allow consumers to buy gold through its platform, also plans to invest Rs 10 crore in marketing to bring more customers on board.

"India loves gold, and during festivals like Dhanteras, this love manifests itself more than ever as millions of our fellow countrymen purchase gold," Paytm Senior Vice-President Nitin Misra said in a statement.

The company, he added, has witnessed an initial surge in demand and expects this to grow further during Dhanteras and Diwali.

"As customers purchase gold during auspicious occasions, the company is expecting 5x growth in gold sales (number of transactions) during the upcoming Dhanteras and Diwali," he said.

The company is witnessing nearly 2 million monthly transactions for Paytm Gold. It is offering 3 per cent extra gold -- up to Rs 4,444 -- on a minimum purchase of Rs 10,000.

"Paytm will also invest Rs 10 crore in marketing to reach out to customers in small cities and educate them about the flexibility, security and transparency of buying gold on the platform," Misra pointed out.

Earlier this year, Paytm had teamed up with MMTC-PAMP to allow consumers to buy gold for as low as Re 1. Under the partnership, Paytm wallet holders could purchase 24-karat 99.9 per cent purity gold online and store it in MMTC-PAMP- secure vaults free of charge.

They can sell their accumulated gold to MMTC-PAMP at live market prices instantly or choose to get it delivered at their doorstep in the form of gold coins.