[Funding alert] Paytm Money picks up Rs 40 Cr from parent One97 Communications
Paytm Money has raised another Rs 40 crore from parent One97 Communications, according to regulatory documents filed with the MCA.
According to the resolution copy, One97 has picked up four crore equity shares of Paytm Money at a premium of Rs 10.
Pravin Jadhav, MD & CEO, Paytm Money, with Vijay Shekhar Sharma, Founder and CEO, Paytm.
This news comes just six months after the subsidiary had raised a tranche of Rs 40 crore from its parent last September. The funding is a part of a Rs 250 crore commitment that Paytm Money received from One97 Communications six months back.
One97 Communications plans to invest this money over the course of the next 18 to 24 months.
Paytm Money was launched in September 2018, with close to 25 AMCs live on its platform, partnering with rating services MorningStar, CRISIL, and Value Research to ease investment decisions for its users.
The platform eventually added all 40 Asset Management Companies (AMCs) in India, by May last year, offering mutual fund schemes.
Further, over the course of last year, it also diversified and announced its foray into stock broking services, for which it has acquired necessary approvals from SEBI, and the sale of National Pension Scheme, exchange traded funds (ETFs), and other financial instruments.
Last September, Paytm elevated Pravin Jadhav as Managing Director and Chief Executive Officer. Around that time, Paytm Money had stated that it catered to over three million users on its investment platform.
In March last year, Paytm Money raised Rs 28.87 crore from parent One97 Communications Pvt Ltd. It had received an investment commitment of $10 million from One97 Communications during the platform's launch.
Paytm’s arch rival PhonePe also announced introduced wealth management services in March last year, partnering with two asset management companies (AMCs), ICICI Prudential and Aditya Birla Sun Life, and offering equity linked savings schemes (ELSS) to its users.
Last month, PhonePe introduced a new savings product ‘Liquid Fund’ on its app. The all-digital product allowed users to invest as low as Rs 500, with no lock in period or minimum balance.
(Edited by Teja Lele Desai)