Paytm Money Rolls Out UPI-Linked IPO Investment Plan, Eyes 10% Market Share

Digital financial service platform Paytm, on Monday (November 30), announced that its wholly-owned subsidiary Paytm Money will now facilitate investment in initial public offers (IPOs) in India. With the latest service, Paytm Money is aiming to take over 8 to 10% of applications market share in the first year of launch.

The retail investors can fill out their applications digitally and can apply for all IPOs through UPI ID linked to their bank accounts. The company claims that it has reduced the entire application process to 3-4 days leveraging on the UPI infrastructure.

For now, Paytm Money allows users to make changes, cancel or reapply the bidding application within the IPO window. It is equipped with features enabling investors to track upcoming IPOs, view company history and details, download prospectus, and also check the performance of past IPOs.

Further, it will add new features to enhance user experience. These features will include IPO funding, derivatives trading, margin finance and a host of other value-adding features, Paytm Money’s CEO Varun Sridhar said.

Sridhar added, “The Indian startup ecosystem has a growing appetite for entering the capital market, now more companies want to raise capital from a broader set of investors with a public listing. Likewise, investors are also increasingly willing to diversify their portfolio. This presents a big opportunity and we intend to make the process more accessible to our fellow citizens… This is aligned with our mission to drive financial inclusion across the country.”

Between March to November 2020, India’s stock exchanges NSE (National Stock Exchange) and BSE (Bombay Stock Exchange) have witnessed 12 IPOs, which have raised aggregate proceeds worth INR 24,973 Cr. Some of the successful IPOS of 2020 are SBI cards, Mazagaon Dock, Rossari Biotech, Happiest Minds, and CAMS. among others.

Happiest Minds and Rossari Biotech were oversubscribed by 150.98x and 79.37x, respectively. Happiest Minds delivered a listing day return of 111%, meanwhile  Rossari Biotech delivered a listing day return of 77% as per NSE’s data.

Paytm Money was launched in September 2018 as a mutual funds platform. The wealth management arm of Vijay Shekhar Sharma-led Paytm sells mutual funds directly to consumers via a low-cost regular plan that eliminates the expense of distributor commissions. It has over 250 employees.

The company has partnered with about 40 AMCs (Asset Management Companies) in India and is a SEBI registered investment advisor. The company aims to become a full-stack investment and wealth management services company.

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