After the success of UPI-powered payments service, all leading digital payments players have been eyeing the next set of growth by engaging their customers with a slew of new products and wealth management is certainly one of them.
After Paytm and Mobikwik, Flipkart-owned PhonePe has forayed into wealth management service. According to the company’s RoC filing first accessed by Techcircle, the new entity called PhonePe Wealth Services was incorporated on November 15.
The wealth management arm has been set up with an authorised capital of Rs 50 crore and paid up capital of Rs 20 crore. Further, the filing stated that Terence Lucien, Head of Mutual Fund and Aniruddha Patwardhan Chief of Engineering at PhonePe are on board of directors at PhonePe Wealth Services.
PhonePe is yet to disclose that who will lead the new vertical.
The firm is expected to offer a suite of expense management features such as mutual funds, instant loan, gold deposits, liquid funds, and pension scheme among others.
This is probably a good time for PhonePe as it has over 100 million users. The Sameer Nigam-led company has recently concluded 1 billion transactions since its inception. As per Entrackr’s sources, PhonePe presently processes over 4 million transactions a day.
PhonePe may introduce a separate app or integrate the wealth management facility in its app. However, the confirmation on the same is awaited. In September, Paytm launched its dedicated mutual fund app ‘Paytm Money’ while Mobikwik also entered the segment after a month with the acquisition of Clearfunds.
Besides, ETMoney, Zerodha, Kuvera also operate in wealth management segment.
Drawing a different line, Freecharge founder Kunal Shah recently unveiled his second gig with Cred that essentially enables top-tier professionals to manage credit card payment and earn reward points.