After Paytm and Paytm Mall, another start-up from from the Vijay Shekhar-led company -- Paytm Money -- is inching in closer towards achieving the 'unicorn' status as it gears up for mega funding round in the next two months. The wholly-owned subsidiary of One97 Communications offers commission-free investment in direct mutual funds and has managed to cross over 1 million users within eight months of its launch. It also offers investment advisory for services such as equity, mutual, and debt mutual funds, insurance and forex.
The company is now planning to raise $1.2 billion at $5 billion valuations from some of the world's top investor groups, including SoftBank and Alibaba's Ant Financial, reported Business Standard, adding that the funding round might be closed in the next two-three months. The company has already initiated talks with these big investors and hopes to tap into tier-II and III cities with a heavy war chest. The reason behind the company going big on its investment-seeking spree is its belief that financial services vertical is the next big thing in India.
So far, Paytm Money has only received around Rs 28.8 crore worth of investment from its parent company. If the deal goes through, Paytm Mall, with its $5 billion valuations, can become one of most valued start-ups after likes of BYJU. So far, Paytm and Paytm Mall have already attained the unicorn status with around $12 billion and $2 billion valuations, respectively.
Recently, Paytm Money had announced the launch of 'investment packs', its first advisory product. These are customised portfolios of mutual fund schemes created by the company's in-house advisory team to cater to the investment needs of all types of investors. They also enabled mutual fund investment via UPI, consolidation and tracking of all mutual fund investments, and 'register SIP & pay later' feature to make the investment process simpler for its users.
Edited by Manoj Sharma