After its success in mutual funds offering, Paytm is gearing up for a foray into stock broking, insurance and loans distribution in the next few months.
After its success in mutual funds offering, Paytm is gearing up for entry into stock broking, insurance and loans distribution in the next few months. After its recent mutual fund foray, the firm is looks to expand its financial services portfolio. The firm may launch the stock broking service in the next few months.
“Personally, one of the exciting things I’m waiting for is stock broking. I’m not very active (in stock market), and I’m waiting for my team..when we did mutual funds, I became an investor in mutual funds. I was not investing in mutual funds previously. I think stock brokerage is very exciting offering we will launch in the next few months,” Vijay Shekhar Sharma, founder of Paytm said in an interview to ET Now. While the idea is to expand, the firm’s focus remains on payments solutions. Sharma explained that financial services are good cohort extension of the payment solutions.
“We are looking to expand our payment acceptance network. We would start upgrading our customers and give them offers from banks and NBFCs, insurance products or wealth products like we have distributed different products of AMCs currently. We will start distributing these products this year,” he said. Sharma noted that the opportunity is huge as India remains an extremely under-served market. Further, with increase in competition, customers become more aware and they start trusting the offering better, he explained.
The competition will help to achieve higher penetration, he observed. “Paytm had reached a certain penetration, but the next level requires even larger investment and many more players. Finally, the customers will go to the product which fulfils most of their needs, and we wish to become that product,” he said. After the firm’s Japan foray, Paytm is also going to launch its offering in other countries. “We are working in Japan as we speak, and the response has been very good. We have a few more countries in queue, and we don’t know the timeline, but our primary focus remains India,” Sharma told the channel.