InvestorQ : How has been the demand for mutual fund investing through Paytm?
Priyanka N made post

How has been the demand for mutual fund investing through Paytm?

Neelam Naik answered.
3 years ago

In India, mutual fund investing is getting a new dimension altogether with small ticket investing being enabled by the likes of Paytm, Google Pay and Phone Pe. Of course, Paytm has been the most aggressive in making financial services a part of its online strategy.

To understand the way micro participation in financial markets is changing, you only need to look at the case of Paytm. Despite a small base, Paytm has seen a 143% increase in SIPs for mutual funds during the fiscal year 2019-20.

The bigger takeaway is in the customer acquisition. During the fiscal year 2019-20, Paytm acquired 66 lakh new customers for its financial services business. Out of these, nearly 70% of the customers were first-time investors, which is what makes the numbers unique.

With smart phones and cheap broadband across India, Paytm has become a critical financial platform for facilitating transactions and inclusion, especially in semi-urban areas. Paytm has a larger game plan to leverage technology to ensure reach and simplicity at low costs.

Paytm has also forayed into stock broking in the current year. What the experience of Paytm shows is that it is possible to run a pure online model to get a wider spectrum of clients to start off by investing in the equity markets. Viability may be a different issue for now.