Paytm has announced that it will close its warehouses. The decision of going asset-light will not only reduce the overhead costs but also help the company to comply with FDI norms in e-commerce.

The company now plans to adopt hyperlocal mode and has asked the sellers to use local couriers for delivery. This will not only ensure faster deliveries but will also result in lower delivery costs.

Paytm had recently raised $165 million from eBay and aims at being EBITDA positive within two years.