After WealthTrust buyout, digital platform space may see more consolidation

Industry observers said the entry of new players with deep pockets and zero-fee structure is going to make it difficult for others to levy a charge

The buyout of Mumbai-based mutual fund (MF) digital platform Wealth Trust, which recently got a lease of life after Orowealth acquired it, indicates more consolidation in the direct platform space.

According to experts, the direct platform space can see more consolidation as existing players try to deal with pricing pressure posed by new entrants like Paytm.  

Speaking to Business Standard, Vijay Kuppa, co-founder of Orowealth, said, “This is a period of consolidation. We have seen fewer number of new mutual fund (MF) apps coming in the last year.” The fee-based advisory model in the MF industry is yet to pick up as