To focus on making investments accessible for millions of users in Tier-2 & Tier 3 cities and beyond
Paytm Money Limited – the wholly owned subsidiary of One97 Communications Limited, which owns Paytm – India’s largest digital payments company has today announced the launch of its dedicated app (on Android & iOS) for Mutual Fund investments as it aims to double the Mutual Fund investor base in India within the next 3 to 5 years.
Paytm Money is the 4th consumer brand from One97 Communications Limited and its very first entity to be built from scratch, operating independently and headquartered in India’s tech capital Bengaluru. The business entity will focus on building investments & wealth management products & services.
While the Mutual Fund industry is under penetrated in India, Paytm Money has already witnessed huge consumer interest with more than 850,000 users registering for early access prior to its launch. With over 96% registrations being made from mobile devices, the company has opted for an app-only approach at its launch. Over 65% of these registrations have come from B15 (beyond top 15 cities), Paytm Money expects to bring wealth creation opportunities to smaller cities & interior towns.
Paytm Money app will be available for download from September 04, 2018 on both Android & iOS. The company will start providing access to 2,500+ users a day and will increase this to 10,000+ users daily over the next few weeks. Users will be informed about access on their registered mobile number or email address. Paytm Money will enable users to complete their fully digital KYC and onboarding for Mutual Fund investments to offer faster access to its app. It’s team will closely work with its initial users to seek feedback & suggestions before opening the service to all.
The company has partnered with 25 AMCs (Asset Management Companies) covering 90% of industry AUM (Assets Under Management) to offer direct plans of Mutual Funds which come with lower expense ratios due to zero distribution fees or commissions. Users can start investing in lump sum or via SIPs with as little as Rs 100 in some of the schemes. Paytm Money has tied up with leading rating services – MorningStar, CRISIL and Value Research to ease investment decision making process. The service will be completely free for its users.
“Access to wealth creation opportunities till today has been limited to a select few. With Paytm Money we want to democratise and bring Mutual Fund investments to millions of Indians. We are committed to take the Mutual Fund investor base in India to 50 million in the next 5 years and expect Paytm Money to be the catalyst in bringing new incremental investors to this industry,” said Vijay Shekhar Sharma, Founder and CEO of Paytm.
Pravin Jadhav, Whole-time Director of Paytm Money said, “We are truly humbled by the unprecedented interest we have received. With Paytm Money, our role is to connect millions of investors to India’s trusted AMCs & fund managers while making the investing process – simple, transparent, accessible to all and offer it completely free to investors. We are building a technology-based platform that offers both investment advisory and execution services, complete detailed risk profiling and provide all possible information to users before they take any investment decision.”
He further added, “Technology is core to everything we do at Paytm Money. We are possibly the only company in investment and wealth management domain that has built the entire technology platform from grounds up. This gives us the capabilities to post transactions in real-time to all AMCs, get faster updates to mutual fund scheme NAVs, show the most updated portfolio value, generate real-time portfolio insights, monitored by real-time reconciliation systems and much more. Our platform is built to handle over a million mutual fund investments per day.”
To drive wider adoption in smaller towns & cities, Paytm Money supports investing from over 190+ banks through Auto-pay e-mandates, physical mandates and NetBanking. Its feature-rich Android app is also one of the lightest apps in this category. The company plans to invest further in product, design, data science and machine learning to analyse user’s risk assessment, recommend advisory portfolios and investment recommendations that suit best to the individual user from time to time.
Earlier this year the company received SEBI approval to act as an Investment Adviser (IA) and aims to provide both investment advisory & execution services. Paytm Money aims to become a full-stack investment & wealth management company. Paytm Money is headquartered in and operates from Bengaluru; its 100+ member team is lead by Pravin Jadhav, Whole-time Director. The company has received an investment commitment of $10 million for setting up its operations from its parent One97 Communications Limited.
Source: BW Disrupt