Paytm has announced the setting up of 'Paytm Money Limited', a wholly owned subsidiary of One97 Communications (the company that owns the brand Paytm) to build investment and wealth management products for its users. The company will invest around $10 million upfront in the new entity, according to a report in Mint. Paytm Money will be the fourth consumer brand from the company after Paytm, Paytm Mall and Paytm Payments Bank.
Pravin Jadhav has been appointed as Senior Vice President to lead this new venture. An ex-entrepreneur, Pravin led product and growth at Servify and Rediff in his earlier roles; and was the Founder and CEO of Wishberg.
Paytm Money is setting up its operations in Bangalore and plans to launch in the first quarter of 2018 post regulatory approvals.
Paytm could create a money market fund for the long-term like Ant Financial, said Vijay Shekhar Sharma to Mint. The company could also make money through the deposits customers keep in their management accounts, the Mint report said. Alibaba and its affiliate Ant Financial are the largest shareholders of One97 Communications. Alibaba's Yu’e Bao Fund is one of the biggest money market funds in the world.
Commenting on the new subsidiary and Pravin’s appointment, Paytm Founder and CEO Vijay Shekhar Sharma said, "We started as a payments platform and expanded customer offerings to deposits with Paytm Payments Bank. Today, with Paytm Money, we have taken the next logical step in the direction of wealth management. Pravin and his team is on a mission to make wealth management easier and accessible to large number of Indians. We aim to increase the size of wealth management customer base and bring simple and easy to understand wealth products to our consumers."
Sharma tweeted: Very happy to publicly unveil PaytmMoney today! Time to GoBig, BeingPractical & our team in Bangalore. Timely upgrade of my business card.
Timely upgrade of my business card 😇 pic.twitter.com/YpVBVpA8Qb
— Vijay Shekhar (@vijayshekhar) January 10, 2018
He also retweeted the announcement: Introducing @PaytmMoney with a focus to build Investment & Wealth Management products for our users. Mr. Pravin Jadhav will lead this new business from our Bengaluru Office.
Introducing @PaytmMoney with a focus to build Investment & Wealth Management products for our users. Mr. Pravin Jadhav will lead this new business from our Bengaluru Office. @BeingPractical @vijayshekhar https://t.co/z2BykT1a7Z
— Paytm (@Paytm) January 10, 2018
Pravin Jadhav, who will lead Paytm Money felt the country'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."
With Paytm Money, Paytm wants to cover the entire spectrum of wealth management and plans to add more investment offerings going forward.
Updated Date: Jan 10, 2018 12:00 PM