Paytm Money, the subsidiary of One97 Communications Ltd that operates Paytm, has reportedly launched a stockbroking feature, a service it has been working on for a while, on its mobile app.
The feature, in a closed beta stage, is available to a limited number of Android users but will be accessible to all in a few weeks, Entrackr reported. It is also, for now, limited to investments by Indian residents.
The feature has been in the works after the Securities and Exchange Board of India (SEBI) in 2019 allowed the company to launch stockbroking services.
Paytm Founder Vijay Shekhar Sharma also hinted at the same at an industry event, the report said.
With this, the wealth management app will compete with Zerodha, Cube Wealth, India Infoline and Groww among others in the space which has seen a lot of interest during lockdown.
With more than 1.5 million customers, market leader Zerodha holds 15 percent of the retail trading volume in India.
The wealth management space has surged as 200 million Indians invested in various options such as stocks and mutual funds.
Paytm Money is likely to have the advantage of strong branding and reach in smaller cities and towns, which could propel it to the front of the race, it added.
Paytm Money has also received approval from the Pension Fund Regulatory and Development Authority to offer National Pension Scheme (NPS) service.
Launched in 2018, Paytm Money claims Rs 5,000 crore worth of assets under management (AUM).
The company’s management has seen reshuffle at the top after MD and CEO Pravin Jadhav resigned over differences with the board followed by CTO and Operations heads.
Varun Sridhar was recently appointed as the CEO, while Amit Kapoor was promoted as the CFO and vice president.
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