Paytm Money targets over 10 mn users, 75 mn yearly transactions in FY22

Paytm’s stocks and mutual fund (MF) investment platform, Paytm Money, is targeting over 10 million users and 75 million yearly transactions in 2021-22, said the Noida-based financial technology company. 

Paytm Money has over 7 million users and has achieved over Rs 5,000 crore in direct MF investments. It aims to register over 150 per cent increase in monthly systematic investment plan (SIP) registrations and 200 per cent increase in total monthly investment volumes over the next few months. 

It allows direct MF users save 1 per cent in commission, compared to regular MFs, it added.

“We strongly believe that wealth management in the country needs to be democratised, embraced, and adopted by all. Technology innovation and a stable product have allowed us to bring direct MF and gold to everyone and offer equity delivery for free and all FN/intraday orders as low as Rs 10,” said Varun Sridhar, chief executive officer (CEO), Paytm Money.

“We are humbled by the trust young investors have shown in Paytm Money by making it their primary platform for all investments. The next 18 months of innovation, launch of new products, and providing a stable platform are going to be our goal,” he added.

Young investors are the target audience for most of the new-age start-ups offering MF and other investments. Zerodha is the market leader, along with Paytm Money, Groww, and other smaller firms.

Last month, Nithin Kamath, founder and CEO of Zerodha, tweeted that in January alone, 1.7 million new demat accounts were added in India. He also told a news channel that the 20-30-year age group was getting more interested in investing and driving these high numbers. 

According to news reports, Groww — another firm targeted at millennials investing in financial products — is in talks with Tiger Global to lead a $100-million funding round at a valuation of $1 billion. 

According to a recent report by Entrackr, Groww’s earnings rose to Rs 1 crore in 2019-20 (FY20), from Rs 20.14 lakh in 2018-19. Zerodha and Upstox — larger firms in the same arena — recorded earnings of Rs 1,094 crore and Rs 148 crore, respectively, while ET Money reported earnings of Rs 2.24 crore in total during FY20. Paytm Money’s financial numbers for FY20 are not public yet. 

Paytm Money was launched in September 2018 as a platform for allowing Paytm users to invest in MFs. It sells MFs directly to consumers through a low-cost regular plan, and removing distributor commissions.

The company also saw over 50 per cent new-to-wealth services users availing of investment products, including direct MFs, stocks, initial public offerings, futures & options, exchange-traded funds, National Pension System, and digital gold on the platform, the firm said.  

By allowing small-ticket investments and trading at Rs 10 per order, Paytm Money is encouraging the masses to start managing their wealth actively and in a safe environment, thus promoting financial inclusion.

While over 35 per cent of investors on Paytm Money are less than 25 years of age, 80 per cent investors are less than 35, and 90 per cent less than 40.

Paytm Money further aims to open over 350,000 demat accounts by year-end and expects 60 per cent of its users to be from small cities. The company aims to retain its top position in the market when it comes to digital gold and is set to cross 6,000 kilograms of gold transacted on the platform. 

The company has more than 60 million investors in digital gold, with many opting for gold SIP as a regular saving option.