In what can be described as shoring up its financial services business, One97 Communications Ltd., the parent company that owns digital payments major Paytm, has absorbed into its fold, a fintech startup, Balance.Tech.
Balance has been operating an app that helps people with managing their savings. It calls it Smart-savings Management. It was a very small outfit with just a team of six members. This includes the 2 founders of the startup and they will also form part of the Paytm organization. The consideration for this takeover has not been disclosed.
The basic business model built by Balance.Tech revolves around encouraging and guiding their customers to develop the habit of savings even if in small amounts and in investing those savings in mutual funds that get them some decent earnings. The indicative returns are in the region of 8.7%. These debt funds don’t have a lock-in period either.
This acquisition follows Paytm’s taking over Cube26, a software technology startup. They are capable of writing new programs for mobile applications that can align with the overall objectives Paytm has in this space.
The Balance and Paytm teams will be working on improving user experiences for customers of Paytm Payments Bank as well as the digital wallets businesses.
“Paytm has always been focused on creating amazing user experiences. The ‘Balance.Tech’ team has great insights and track record in building intelligent and elegantly designed products. The 6-member team has joined the Paytm product and design team and is working on further enhancing Paytm’s user/merchant interfaces,” Paytm said in a statement
Backed by deep-pocketed investors such as Japan’s SoftBank, China’s Alibaba Group and SAIF Partners, Paytm has been aggressively expanding operations across verticals. The acquisition of Balance.Tech comes at a time when it is set to launch Paytm Money, which will be its wealth management platform. Paytm Money will offer services such as mutual funds, insurance, etc.