Alibaba-Backed Paytm Money Beats Zerodha; Becomes #1 Platform For Investors
Paytm Money claims to have achieved a customer base of 6.6 million. The latest entrant into the industry, Paytm Money started offering stockbroking services in August 2020 despite acquiring a license from the Securities and Exchange Board of India (Sebi) in April 2019.
With this figure, the One97 Communications Ltd. owned Paytm Money has surpassed Zerodha, one of the largest retail brokerage firms in the country, by volume.
Read on to find out more…
Paytm Money Speedily Gaining Fame!
Currently, Vijay Shekhar Sharma-owned Paytm Money sells Rs 20 crore worth of direct mutual funds on its platform daily along with products related to the national pension scheme (NPS) and stocks.
On the other hand, according to Zerodha, it facilitates 5 million orders daily which accounts for almost 15% of India’s daily equity transaction volume. Recently, the Bengaluru-based Zerodha enrolled itself in the unicorn-club as it valued itself to $1 billion.
Meanwhile, Paytm Money has 70% of its user base being first- time investors and 60% from smaller towns and cities. It claims that it has more than 2.5 lakh users, which have applied to register for the stockbroking service.
Zerodha claims to have a user base of 3 million, of which 65% are first-time investors. Recently, Zerodha founder Nithin Kamath told LiveMint that it was aggressively acquiring new users, adding 2,50,000 new unique accounts every month.
In the year 2019-20, the Ali Baba-backed Paytm Money also claimed to have registered a 100% increase in new monthly SIP registrations and a 143% increase in overall monthly investment volumes.
With Paytm Money having completed two years of operation, Zerodha has been offering services in this industry for over a decade.
What Does Paytm Money Have To Say?
Varun Sridhar, the CEO, Paytm Money appointed in July, said, “We are on a mission to democratize wealth services for millions of Indians that would play a key role in building Atmanirbahar Bharat. Over the last two years, we have enabled new users from small cities and towns to invest with confidence by providing innovative and personalized services. We strive to become the first step in the investment journey so that every user benefits from technology and financial inclusion.”
Future Plans of the New Competitors?
According to LiveMint reports, Paytm Money expects to do a full-scale launch of its stockbroking service in September and expects to hit 100,000 in daily trades within six months, touching 250,000 customers in the first year.
Zerodha is planning to launch a ‘loan against securities’ product this month after talking about it for nearly 2 years. It received its non-banking finance company (NBFC) license from the Reserve Bank of India (RBI) way back in 2018. On the other hand, Paytm already offers loan services,
As you can see, these two companies are treading along similar paths.
The competition has just begun and it will be interesting to watch where it is heading and most importantly how it will benefit the users!