This would also be the leading business vertical to lead Paytm parent One97 Communications towards operational profitability in the next financial year, company CEO Vijay Shekhar Sharma said. This is largely attributed to the business vertical scaling up its revenue generation amid increased digital adoption for investments by retail investors.
Paytm Money will also enable users to invest in fixed deposits (FD) soon, besides starting Future and Options investments through the platform from Wednesday. Half of Paytm’s customers are first time investors, said Varun Sridhar, CEO, Paytm Money. The platform, which is separate from the main Paytm app, – allows investments in stocks, direct mutual funds, ETF, IPO, NPS, and digital gold. In total, it has around 6 million users on the platform.
“This is the time to scale from niche wealth services to scale it to masses. We have invested around $30 million in this vertical out of the total allocation. Paytm Money is our bright spot for revenue generation from a One97 Communications perspective. From fiscal year 2022, we are aiming to break-even towards the tail-end of the year,” Sharma said.
For financial year 2020, One97 Communications cut its losses by 30% to Rs 2,942 crore. Paytm Money competes with ET Money, owned by Times Internet which is part of the BCCL Group that publishes this newspaper.