PayTM Money has received Rs 40 crore from its parent body One97 Communications as part of the Rs 250 Crore commitment it had received six months back.
PayTM Money has received Rs 40 crore from its parent body One97 Communications as part of the Rs 250 Crore commitment it had received six months back. These funds will be invested over a period of 18 to 24 months. PayTM Money had earlier raised Rs 28.87 Crore and Rs 40 Crore in months of March and September 2019. As confirmed by regulatory documents filed with MCA, One97 Communications in turn has picked up 4 crore equity shares of PayTM Money at a premium of Rs 10.
At a time where the mutual fund industry is expected to grow exponentially and double its size within the next 4-5 years, PayTM Money MD Pravin Jadhav expects direct MF share in the market to increase to 25 per cent in 2 years and Paytm Money contribution cross around 50 per cent in 2020. Till last year August, PayTM Money had around 40 per cent of total direct mutual fund subscribed from their platform and its only expected to have grown. The ‘Paytm Switch’ option for mutual funds is also helping its cause. It enables customers to switch from regular MF to direct MF, from banks, stock brokers, distributors and asset management companies to Paytm Money.
PayTM Money, a full digital app was launched in September 2018 with around 25 Asset Management Companies (AMCs) going live on its platform, along with rating companies like CRISIL, MorningStar and Value Research giving users true value for their money and helping them with their investment decisions. Gradually all 40 AMCs in India are now onboard. It also started offering mutual fund schemes for its users and as a result within one year of its launch in September 2018, PayTM Money’s user base was reported to be around 3 million users and its only expected to grow exponentially thanks to innovative features like NFO subscription and other switch options for its users.
The company is growing fast under its new Managing Director and CEO Pravin Jadhav. After getting the required approvals from SEBI, PayTM Money has also upped its service portfolio, offering stock broking services, selling of National Pension Scheme and Exchange Traded Funds (EFTs) and other financial instruments.
It is an intense battle where no one wants to be left behind. Not to be left behind, PayTM competitor PhonePe has also introduced wealth management services in March 2018 partnered with 2 AMCs ICICI Prudential and Aditya Birla Life and offers linked savings schemes (ELSS) to its users. It also introduced a new savings product called ‘Liquid Funds’ allowing its users to start with as low as Rs 500, with zero balance and no lock in periods.