- Paytm Money, One97 Communications’ wealth management arm, has softly introduced a stockbroking feature within the application
Paytm Money, One97 Communications’ wealth management arm, has softly introduced a stockbroking feature within the application. For a while, the company planned to start a stockbroking operation.
Since the app is still in a closed beta level, it will be rolled out in a few weeks from now for everyone. It is worth noting that last year the Noida-based firm had received a nod from India’s Securities & Exchange Board or SEBI for stockbroking services. The app is only available to Android users and funds Indian residents’ investments.
Paytm Money will compete with the stock trading feature, including Zerodha, ET Money, IndMoney and India Infoline, Groww, and Cube Capital. Zerodha is currently leading the discount brokerage space and contributing to approximately 15 percent of Indian retail trade volume. The firm led by Nitin Kamath is the biggest retail stockbroker with a client base of over 1.5 million.
Vijay Shekhar Sharma, the founder of Paytm, suggested at a recent industry conference about stockbroking services. The wealth management app also obtained permission from the Regulatory and Development Authority (PFRDA) of the Pension Fund to include NPS.
Paytm Money is after Paytm Mall’s most important bet from the Noida-based company. It also claims to have Rs 5,000 crore assets under its management which was launched in October 2018. Paytm Money had recently roped as the new CEO in Varun Sridhar and promoted Amit Kapoor to the company’s CFO and Vice President.
Importantly, Pravin Jadhav who led Paytm Money from scratch left Paytm Money on the pretext of ESOPs and remuneration, due to some disagreements with the company and its board. Shortly after his departure, the CTO and operations head of Paytm Money resigned as well.
Lately, there was a race to become a mega app to handle the money of 200 million Indians invested in mutual funds, SIPs, and stocks. More than half a dozen well-funded firms, along with smaller ones, have aggressively fought to keep users aboard.
Since of its good branding and scope, Paytm Money can get an advantage over others. If the company finds a foothold in smaller cities and draws low-income groups to invest in mutual funds, SIPs, or gold, on the lines of its payment market, a winner may emerge in the overall wealth management space.