Paytm Money, the subsidiary of Paytm, which recently started as the full-fledged retail broking service in the Indian stock market, has today announced the facility of applying in the IPO from its app itself.
The platform has enabled investors to instantly apply for all the latest IPOs via UPI ID, linked to their bank accounts to quickly complete the IPO application process. The company is leveraging the convenience of UPI infrastructure, which was recently allowed by SEBI for applying in IPOs to reduce the time required to complete the process of IPO from 6 days to 3 days.
Paytm App is also providing the option to check the upcoming IPOs, the company details, prospectus details, etc. The platform also gives an option to modify, and cancel the IPO application.
Varun Sridhar, CEO — Paytm Money said, “The Indian start-up 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 portfolios. This presents a big opportunity and we intend to make the process more accessible to our fellow citizens. In near future, we plan to launch IPO funding, derivatives trading, margin finance, and a host of other value-adding features to make investing seamless and convenient. This is aligned with our mission to drive financial inclusion across the country.”
Paytm is trying to attract IPO investors which in itself is a very big market. In the month of Sept and Oct-2020, we have seen how dozens of companies raised money from the IPO market. The investors who have applied in the IPOs too have made big money. This presents a big opportunity for Paytm to capture the market. If Paytm able to capture the interest of clients with ease of service to apply in the IPOs, then they will surely increase their presence in the broking business.
We at UnlistedZone think that Paytm in the broking business with the use of technology will try to copy-cat Zerodha features and services one by one. Now the time will tell whether it can replicate the performance of Zerodha or not.