MUMBAI: Paytm Money is planning a full-scale launch of its retail stock broking service in six to eight weeks, newly appointed CEO Varun Sridhar told ET in an interview, marking the transition of the company into a retail broking platform.
The wealth management subsidiary of Noida-based One97 Communications Ltd is currently operating in an “early-access” beta mode, with the full set of features available only to about 80,000 Android-based existing users on its platform.
Paytm Money, which till now only allowed users to invest in Mutual Funds, is targeting 250,000 new active users over the next year hoping to hit daily volumes of about 600,000 trades a day, said Sridhar.
“We are planning to democratise the money management space for 300 million Indians,” said Sridhar, who recently replaced Pravin Jadhav who resigned as CEO earlier this year.
Its new business model would involve a mix of commissions on intraday trades, interest income on loan against shares and subscription income from select services that will be launched over the next few months in a 60%-20%-20% mix, respectively, Sridhar explained.
While Paytm Money has kept broking fees on longer term investments at zero, intra-day trades would command a flat fee of 10 per trade, which according to Sridhar is among the lowest in the industry.
“We are not targeting ultra-wealthy individuals; our focus is on providing a simple product for retail investors and traders who are looking for simple broking solutions,” he said.
The company faces stiff competition from the likes of Zerodha and Groww in the new age retail broking space and more established ICICI Securities and HDFC Securities in the portfolio management space. The full-scale launch of retail equity broking would not immediately be accompanied by commodity and derivative trading features.
The wealth management subsidiary of Noida-based One97 Communications Ltd is currently operating in an “early-access” beta mode, with the full set of features available only to about 80,000 Android-based existing users on its platform.
Paytm Money, which till now only allowed users to invest in Mutual Funds, is targeting 250,000 new active users over the next year hoping to hit daily volumes of about 600,000 trades a day, said Sridhar.
“We are planning to democratise the money management space for 300 million Indians,” said Sridhar, who recently replaced Pravin Jadhav who resigned as CEO earlier this year.
Its new business model would involve a mix of commissions on intraday trades, interest income on loan against shares and subscription income from select services that will be launched over the next few months in a 60%-20%-20% mix, respectively, Sridhar explained.
While Paytm Money has kept broking fees on longer term investments at zero, intra-day trades would command a flat fee of 10 per trade, which according to Sridhar is among the lowest in the industry.
“We are not targeting ultra-wealthy individuals; our focus is on providing a simple product for retail investors and traders who are looking for simple broking solutions,” he said.
The company faces stiff competition from the likes of Zerodha and Groww in the new age retail broking space and more established ICICI Securities and HDFC Securities in the portfolio management space. The full-scale launch of retail equity broking would not immediately be accompanied by commodity and derivative trading features.
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