Paytm sets up an investment arm, Paytm Money

Paytm, run by One97 Communications is starting a new investment advisory company- Paytm Money that will offer investment and wealth management products and will invest close to $10 million upfront in the new entity.

Paytm Money will be the fourth consumer brand from One97 Communications after Paytm, Paytm Mall and Paytm Payments Bank. The new company will be headed by former Rediff and social networking site Wishberg executive Pravin Jadhav. "This will be a totally technology-led digital product without any offline presence," Jadhav said. "We will only offer direct plans to customers and will not take any commission from funds. We plan to tap Paytm Payments Bank customers."

At present, Paytm Money is setting up its operations in Bangalore and looking to seek regulatory approvals from SEBI to commence operations. The new company plans to go live (with the platform) after four to six weeks of receiving the approval. According to the company, the launch is ideally supposed to take place in the first quarter of 2018.

The company said there would not be any hidden fees or commission. “India will be a mutual fund-first market, we are in discussions with leading AMCs to offer mutual fund investments in the direct mode for our users,” Jadhav 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. We aim to increase the size of wealth management customer base and bring simple and easy to understand wealth products to our consumers,” Paytm founder Vijay Shekhar Sharma said.