One97 Communications, the parent company of India’s financial behemoth Paytm and Paytm Money is expected to make an additional Rs 250 crore investment in the wealth management platform in the next 12-18 months, as reported by an English Daily.
One97 had announced the commitment of USD 10 million upfront investments during the launch of Paytm Money. In the past few months, the startup has raised over USD 4 million from the parent entity.
Paytm Money, who has around a total user base of 2.5 million and 1 million monthly active users, is now aiming to foray into the low- cost broking model.
“Besides mutual funds, Paytm Money has already received green light for providing stockbroking and depository services. Within a span of less than one year of launch, the firm has reached at the top in terms of offering direct systematic investment plans (SIPs). The company is accountable for conducting 40 percent of the total SIP registrations in the country and is looking for further expansion plans,” told Paytm Money Director Pravin Jadhav.
Vijay Shekhar Sharma led Paytm’s financial services subsidiary stands out from other distributors since it is registered as an investment advisor with SEBI and can endow SIPs for as low as Rs 100 as the entire investment and redemption process is carried out on the mobile app with zero human interference.
Paytm Money which claims to have 70 percent of users from smaller cities are working with the main target to simplify investing for common people.
“Micro-SIPs will expand the mutual fund investor market to 50 million in four-five years from 19 million presently,” Jadhav further added.
To bring more customers and fight against incumbents, the entity is enabling various features like mutual fund investment through UPI and SIP Now and Pay Later option.
( With inputs from TOI)
