Paytm the digital payments company has partnered with food delivery company Zomato to take food orders using its payment app from across the country, primarily focussing on Tier 2 and Tier 3 cities. It has emerged as next big frontier for several consumer internet companies, who are in one way or another exploring investments, acquisitions or expansions into the food-delivery business.

Earlier last year the online food ordering and restaurant discovery platform announced plans to follow in the footsteps of larger internet peers such as Amazon, Flipkart, and Ola to build its own payments network. The Gurgaon-based Zomato was reportedly working hard to develop its payments platform and even started hiring for payment and partnership roles. The search has now come to an end.

Our partnership with Zomato is a valuable addition to our dais in bringing the convenience of ordering food online through our app – Renu Satti, Paytm senior vice-president

At the outset, the food ordering service is available for Delhi-NCR customers using the Paytm app on Android devices. Eventually, the company does have plans to make it available across India and through the Paytm app and iOS app as well. Zomato has recently expanded its online ordering and food delivery service to an additional 30 cities in India.

Zomato enlarged its online ordering and food delivery service to 30 additional cities in India last November and presently covers more than 80,000 restaurants across 100 cities. In December, the startup achieved a monthly order run rate of 28 million and had a last mile delivery fleet of 1.5 lakh partners across the country. The online food delivery platform is also organizing its first edition of food and entertainment carnival Zoomland on 18 January to 20 January at Jawaharlal Nehru stadium, Delhi.

As an introductory offer, Paytm is giving up to Rs. 100 worth of cashback for customers ordering food through its app. There is a dedicated “Hungry” promo code to avail the cashback on food orders.

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