Paytm has already branched out in various sectors including insurance, e-commerce, and the banking sector. After which the financial technology unicorn has tightened its seat belt to step into the stock-broking services. This is expected to be cleared in the coming few weeks.
Payments are the largest source of revenue for the Alibaba-backed firm with several million-dollar of revenue coming from that source itself. It also stands in second place and in third place in the industry in terms of ticketing and events business and e-commerce, respectively.
Vijay Shekhar Sharma, founder, and CEO of Paytm says that after achieving all the above-mentioned landmarks the firm started to build its financial services vertical with the banking sector, it also looks forward to entering into the lending business. While addressing the crowd at Global Fintech Fest virtually he also said that the company is already performing greatly in mutual funds and is soon laying the stepping stone towards stock brokerage. The same is expected to be launched in the next 2-3 weeks. The company has already received a nod from the Securities Exchange Board of India or SEBI, India’s stock market regulator. The approval from SEBI for brokerage services was received in the month of January this year.
Earlier this month, Paytm along with Vijay acquired Raheja QBE General Insurance for a sum of approximately Rs 568 crore. The reason behind acquiring insurance firm Raheja QBE was that the firm wanted to get a capital source to expand its lending business in the long run. Vijay says “If we were to be a large company after 15 years, we should be an incredible insurer.”
The coronavirus pandemic has helped the firm expand its operations leading to higher transaction volumes for the company. According to the information provided by Vijay, an average active Paytm customer is now carrying out 2.5 times to 3.5 times more transactions in comparison to pre COVID levels. He also said that the users are on average doing 2 transactions per week.