Paytm’s wealth management platform Paytm Money has received fresh funding of about $4 million (Rs 28.87 crore) from the parent entity – One97 Communications.
This is the largest capital infusion by the Noida-based company after launching it six months ago. The company was set up in November 2017 with a commitment of $10 million upfront investment.
The round could be a part of the upfront commitment by the holding entity.
According to the latest RoC filing with MCA, One97 Communications has put in Rs 28.87 crore on February 15 for 288 lakh equity shares at Rs 10 reach.
The filing accessed by Entrackr (hat tip: paper.vc) revealed that it received Rs 25 crore in December and Rs 5 crore in November 2018 from the parent entity.
This fresh investment comes at a time when Paytm Money is having a ball in wealth management space. In late January, the company claimed to have crossed 1 million usersbase within six months of launch.
As of now, the Bengaluru-headquartered firm has partnered with 35 Asset Management Companies (AMCs) and attributes smaller cities for the surge in customer base.
This also gives confidence to the company and recently One97 integrates Paytm Money with so far struggling Paytm Payments Bank. The amalgamation will allow 42 million customers of digital payments bank to invest in Paytm Money products such as Mutual fund and SIP.
To bring more customers and fight against incumbents, the Pravin Jadhav led entity has enabled more features like mutual fund investment through UPI, SIP Now and Pay Later option, consolidation and tracking of all mutual fund investments.
It will be interesting to watch how Paytm leverages its huge userbase to run ahead of several players in this space including ETMoney, Sqrrl, Orowealth, Kuvera, Fincash, Kaleidofin, Scripbox, Piggy and others.
Besides the aforementioned firms, Paytm’s core competitors – PhonePe and MobiKwik also have forayed into wealth management space.