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Paytm To Invest Rs.250 Crores For Its Travel Business

Digital payments firm Paytm on Thursday announced to invest Rs 250 crore in its travel business over the next six months to scale up product and technology team for new business

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Paytm, Business, Travel, innovation, money
The company has chosen Bengaluru as the base of operations for its travel Business with a teame of over 300 members. Pixabay

Digital payments firm Paytm on Thursday announced to invest Rs 250 crore in its travel business over the next six months to scale up product and technology team and set up new business verticals.

According to the company, owned by One97 Communications, it has sold over 100 million tickets within just three years of operations.

“We continue to witness strong growth in tier 2 and 3 cities, which accounts for over 65 per cent of our new customers. This investment will help us further bolster our position as a dominant player in the travel booking space,” said Abhishek Rajan, Senior Vice President at Paytm Travel.

The company claimed that it sells more than six million travel tickets every month and is targeting to grow by 100 per cent in the current financial year.

Paytm, Business, Travel, innovation, money
Paytm Travel has launched several product innovations like free cancellation that starts as low as Rs 99 for flights and Rs 9 for bus. Wikimedia Commons

With a customer base of more than 15 million and annual GMV of $1 billion, Paytm has quickly risen to become a leading online travel booking destination in India.

Since its inception, Paytm Travel has launched several product innovations like free cancellation that starts as low as Rs 99 for flights and Rs 9 for bus, zero cancellation-processing fee on flight tickets and instant refunds among others.

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“Our users have saved more than 60 crore from our free cancellation feature on flight and bus ticket bookings,” added Rajan.

The company has chosen Bengaluru as the base of operations for its travel Business with a teame of over 300 members. (IANS)

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How to Extend Your Business Abroad

Starting a business or expanding an existing one is now easier than ever, considering the multiple options their owners have

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Business
Starting a Business or expanding an existing one is now easier than ever. Pixabay

Starting a business or expanding an existing one is now easier than ever, considering the multiple options their owners have in terms of structures they can employ and even countries they can choose from. While the creation of a new company is usually simpler, the expansion of a business abroad will imply more financial resources directed to finding suitable premises, offices, employment and even production.

When it comes to the structures to be used for expanding a business abroad, the branch office and the subsidiary are the most employed. The creation of a subsidiary in Malta, for example, implies registering a local company which benefits from the same advantages as domestic businesses.

Let’s see what the expansion of a business through these two options implies.

The subsidiary company as an expansion option of a business

The subsidiary will usually be used by foreign companies seeking to develop other activities in the country it will move to. Among the advantages of this structure, we can mention the possibility of choosing the structure under which the business will operate which can lead to an easier incorporation procedure. Referring to the example above, starting a company in Malta under the form of a subsidiary can help investors operate under a limited liability company which is a popular business structure in countries all over the world.

There are also various tax advantages when operating a foreign business under a subsidiary company abroad. Among these, being subject to the same corporate tax, which in certain countries is lower than in the parent company’s home state, can represent a huge benefit when expanding it.

Setting up a branch office in order to expand a company

Compared to the subsidiary, the branch office offers the parent company more control over its activities. This is because the branch office will operate as a satellite of the foreign company, but will also be restricted to completing the same activities of the parent business.

The advantages of the branch office usually refer to more relaxed registration and licensing requirements and cheaper incorporation costs.

Expanding a company in a foreign country is a solution often employed by business owners seeking to diversify their activities and expanding their operations to clients abroad. The advantages of such a decision are often related to increased revenues and also to capitalizing on markets which do not offer the foreign company’s products or services.