Paytm Money recently opened its first investment office in Ahmedabad and announced plans to hire 100 persons to expand the company’s operations. With plans to increase user friendly applications on its platform, the company says it is here to stay for a long time.
THE WEEK caught up with Paytm Money CEO Varun Sridhar to talk about company’s plans and market scenario.
Excerpts:
Why have you chosen Ahmedabad to open an office?
We have three reasons to choose Ahmedabad as our first investment office in India — the user base of the city demands great features and great pricing, which we believe we can fulfil with our offerings. Secondly, in just a year of launching equity and opening over one lakh accounts in Gujarat, a lot of our users reached out with the suggestion of having a physical presence in the state that would make them comfortable and also make it convenient to shift their family wealth to our platform, even if they continue to have a digital working relationship with us. Lastly, Gujarat offers a large revenue potential and we want to be the number one wealth management platform.
Any plans to open the next office? If yes where?
We will see the impact of our Ahmedabad office on client behaviour, new acquisitions, and revenues and then take the next steps accordingly.
Paytm IPO had a dismal listing. How will Paytm Money win the trust of the people as you expand the business?
The company has to win the trust and that is through transparency, knowledge and product.
What is Paytm Money’s target in the next one year?
We hope to launch many more innovative, disruptive equity, mutual fund and wealth products and become the one place where users can save, invest and trade. Our focus will be on continuing to offer a product users love, technology that's stable and fast. We are already a leading broker in one year from launch, without any major marketing effort. We hope to continue to win user love and trust.
There are many platforms available for an investor to directly invest in mutual funds. What is so unique about your company that pulls the investor?
Paytm Money is simple, trustworthy and assures on-time delivery. We are the pioneers of Direct Mutual funds in India, we were the first to transparently inform users that they pay 1% commission to their distributor (bank/IFA/Brokers) on their AUM and users appreciated this and realised that our product helps them save a lot. They also have access to the widest range of AMCs and funds in India in a single screen, organised beautifully. Combine this with easy payments, investor education with extensive reports, a video first Paytm Wealth Community, blogs and so much more all in one app.
Is India witnessing any change in investment in equity market and mutual funds?
In the last one and a half years, the Indian capital market has changed completely — it has become mature, seen inclusive retail participation, emergence of tech-led platforms, supportive and progressive regulator and so much more. We believe that 2020-2030 will be the most important decade in the wealth tech space. There are three new trends emerging — Firstly, ETFs are becoming very popular and we are proud to be yet again leading that disruption. Secondly, investors are becoming better at-risk management and third, there is a new generation of investors who are keen to learn professionally and not just search for tips. It's a new India that we are creating together.
