Paytm Money will receive a fresh infusion of funds directly from its parent company One97 Communications. The amount to be invested in Paytm Money is likely to be Rs 250 crore. Paytm Money received Rs 80 crore in its first year of business from the promoter Vijay Shekar Sharma.
Having obtained the regulatory approvals for offering stockbroking and depository services, Paytm Money is now all set to create ripples in the market. Already, the mobile based app is claiming to be holding a market share of 40% in the systematic investment plan or SIP registrations in the country. The company says a majority of its customers are from the tier 2 and tier 3 towns, making a point that it has achieved a creditable penetration of the markets where the untapped potential still exists.
The one major reason being cited for this is that Paytm Money is able to offer SIPs at really low sums of investment as just Rs 100. It is an online facility and it is an automated process without any human intervention. Paytm Money further believes that its micro-SIP offerings are a form of service to Indiaâ€™s capital market since it has helped in adding more investors in mutual funds in a short span of time than thought possible. The company feels the figure of 19 million investors currently making investments in mutual funds could grow to 50 million in just 4 yearsâ€™ time. That could be a huge achievement in itself.
Giving out the statistics on the investment preferences on its platform, Paytm Money says around 50% of the investors have preferred to park their money in equity schemes, 20% in tax saving schemes. 20% of the overall investor base has chosen the instant redemption scheme. Only the remaining investors have opted for the debt schemes. Paytm Money offers a better user experience on its app by giving investors the facility to view the performance of schemes they have invested in.