Wealth management arm of One97 Communications, Paytm Money has received Rs 60 crore in fresh tranche from the holding company amidst expansion, growth and introduction of new products. This is the second infusion from the parent entity in the past couple of months.
Paytm Money has allotted 600,00,000 equity shares at Rs 10 per share to raise Rs 60 crore from parent company One97 Communications, shows regulatory filings.
In July 2019, One97 Communications had announced to make an additional Rs 250 crore investment in Paytm Money in the next 12-18 months. Two months ago, the firm had picked up Rs 40 crore from the parent company. Like previous investments, the company is likely to deploy it towards sourcing up products, strengthening technology, and expanding its team.
For Paytm Money, the ongoing calendar year has been full of ups and downs. At the beginning of 2020, Paytm Money’s MD and CEO Pravin Jadhav put in his papers followed by resignations of the company’s chief technology officer Suresh Vasudevan and head of operations Beejish Pillai.
Soon after their resignations, Paytm Money roped in Varun Sridhar as its new Chief Executive Officer. Sridhar’s appointment came just before the company’s plan to enter the stockbroking segment. Since his arrival, Sridhar has been busy launching equity brokerage features along with mutual funds, NPS, and gold services.
Product-wise Paytm Money claims to have grown rapidly in the past couple of months. The introduction of stockbroking along with exchange-traded funds has been received well. Moreover, the company recently claimed that its digital gold business has grown 2X in the last six months with average order value going up by 60%.
While the financial performance of Paytm Money in FY20 is yet to be public, the firm had spent around Rs 37.62 crore in total to generate a turnover of Rs 76.26 lakhs in FY19. The company competes with Zerodha, Ind Money, Groww among others.
