Paytm is working on the launch of its new mutual funds platform dubbed ‘Paytm Money,’ reports Economic Times. It has initiated beta testing of the service among its employees, the report adds, and may launch to the public by the end of this month.
Paytm Money will allow customers to invest in mutual funds through investment fund houses through direct and not regular plans available in India. Direct plans are usually cheaper as they are available directly from a mutual fund company, whereas regular plans involve buying from an adviser, broker or another intermediary, which levies multiple charges. The company has also tied up with third-party mutual fund research firms to offer advice to customers.
Paytm has built a team for the mutual fund service in Bangalore under Pravin Jadhav , the director of the product. In a blog post, Jadhav explained the service, “India’s wealth management services market have so far focused mainly on the urban segment leaving a huge chunk of the market untapped… India will be a Mutual-Funds first market, we are in discussions with leading AMCs to offer Mutual Fund Investments in Direct Mode for our users.”
Paytm’s recent moves
Recently, the company launched a new digital payments service in Japan in collaboration with SoftBank. This will be Paytm’s second international market after Canada, where the company has a bill payments application. Prior to that, Paytm launched a Forex service, for currency exchange of 20 top international currencies on its platform. The development came shortly after the company announced that it has achieved an annual run rate of 5 billion transactions and $50 billion in Gross Transaction Value (GTV). Last month, Paytm Mall, the e-commerce arm of Paytm raised $200 million from SoftBank in a new round of funding. In June, Paytm’s parent firm One97 Communications Ltd acquired Delhi-based technology startup Cube26 for an undisclosed amount. Last week, Paytm Mall also announced the appointment of four new executives its senior management team, including one to launch and expand an international business.