Having dabbled in insurance, e-commerce and banking, fintech unicorn Paytm is set to launch into stock brokerage services in the coming weeks.
“Payments is the biggest revenue for us and a few million dollars of revenue comes from that, and then we’re number two in the industry in ticketing and events and distant number three in e-commerce. “said Vijay Shekhar Sharma, founder and CEO of the Alibaba-backed company. “We then started to build our financial services stack with the bank and we hope to do lending. We are good at mutual funds and we hope to do stock brokerage which should be launched in the next 2-3 weeks “, he said during a virtual keynote at the Global Fintech Fest.
Paytm had received approval for brokerage services from the market regulator Securities Exchange Board of India (Sebi) in January this year.
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Sharma said securing a source of capital to expand her long-term lending business was the reason she bought insurance company Raheja QBE earlier this month. “If we were to be a big company after 15 years, we would be an incredible insurer. The largest amounts are held with insurance companies. Berkshire Hathaway at AIA have significant pools of capital available to deploy,” he added.
“People ask us about our top-up, payment banking and insurance choices. I see Paytm as a 10-20 year business and not a business where we have to return the cart,” a- he said during a fireside chat with Rajan Anandan, Managing Director, Sequoia Capital India.
Paytm and Sharma together acquired Raheja QBE General Insurance for almost Rs 568 crore earlier this month.
Covid-19 has also resulted in increased transaction volumes for the company. “An average active Paytm user now transacts 2.5 to 3.5 times more and averages two transactions per week on the platform,” he added.