Paytm is planning to build a whole financial sector in itself. A few weeks after launching Paytm Money and introducing mutual funds distribution its app, the newly launched financial platform is aiming to sell shares of listed companies via the app.
The firm is all prepared to submit its application to either of the two exchanges, BSE and the National Stock Exchange (NSE).
Industry pundits says that introduction of different facilities in the app shows the aspiration of the platform as a financial company.
Currently, paytm Money claims to have over 1 million registered users with more than 10,000 customers a day are allowed access to the app to be able to buy and sell mutual funds.
From selling mutual fund to direct equities, the platform is planning to capture all sorts of investors. The stockbroker licence will allow the company to offer direct equities, commodities and derivatives.
Experts believe that Paytm’s entry into the sector will surely bring some transformation in the equity segment as well.
Recently, Paytm Money said it’s targeting many first time investor from tier II and III cities in mutual fund category. The company already claims that 65 per cent of users on the platform are from beyond the top 15 cities.
Experts are resting in Paytm from a new end. Flush with funds, Paytm Money can offer products at low cost. It already offers direct plans of mutual funds, which do not involve distributor commissions and thus come at a lower cost. Besides, it does not charge any advisory fee.
Nithin Kamath, CEO of Zerodha, who is early entrant in the segment, said that potentially, Paytm could introduce a lot more first-time investors in the stock market than we have ever done. That is mainly because they already have a captive audience.
The development was first reported by Mint.
