Paytm founder and CEO Mr Vijay Sekhar Sharma announced that his company would be venturing into stock broking services to cater to the demands in India from August’ 2020.
“Payments have been the major revenue earner for us and a couple of million dollar rebvenue comes from it standalone. We are in the position of number two in India in terms of ticketing and events business and a distant number 3 in e-commerce’ said Sharma.
“We started to build up our capabilities in banking through financial services and we certainly aspire to get into lending in a major way. Our abilities were tested successfully in mutual funds and thus our foray into stock broking within 2 to 3 weeks from now would obviously give us a lot of swing in our arm in this sector” Sharma added here, during his virtual representation at the Global Fintech Fest, which happened recently.
The Noida based firm got their clearances from India’s apex body SEBI for stock broking in the month of January this year. The entire stock broking services shall come under Pay TM Wealth feature.
Sharma said that his firm’s comfort in getting the capital that was required to venture into expansion of the lending business led him to acquire the Insurance business of Raheja QBE this month. “If we need to become a large company after 15 years, it is imperative for us to become an incredible insurer” As you know that the biggest funds are available with the Insurance companies, thus making the Life Insurance Corporation of India the most sought after rescue and bail out machinery whenever there is a capital requirement in India. Similarly globally Berkshire Hathway to AIA holds large pool of capital available to be deployed in terms of need.
“People question us for our choice of recharges, payments bank and insurance business; I look at Paytm as a 10 to 20 year business over the horizon and not as a run of the mill kind of an organization with a myopic business vision”. He was quoted to have said that in the forum.
In March 2015, Paytm received its huge stake from Chinese e-commerce company Alibaba Group, after Ant Financial Services Group, an Alibaba Group affiliate, took 40% stock in Paytm,
as part of a strategic agreement. Soon after, it received backing from Ratan Tata, the MD of Tata Sons. In August 2016, Paytm raised funding from Mountain Capital, one of Taiwan-based MediaTek's investment funds at a valuation of over $5 billion.
In May 2017, Paytm received its biggest round of stake by a single investor – SoftBank, thus bringing the company's valuation to an estimated $10 billion. In August 2018, Berkshire Hathaway invested $356 million for 3%- 4% stake in Paytm, although Berkshire Hathaway confirmed that Warren Buffett was not involved in the transaction.
On November 25, 2019, Paytm raised $1 billion in a funding round led by US asset manager T Rowe Price along with existing investors Ant Financial and SoftBank Vision Fund.