Online mutual funds platform Paytm Money has raised Rs 28.87 crore from parent One97 Communications Pvt Ltd, in exchange for 2.8 crore equity shares of Rs 10 each.
This round could be part of the overall $10 million which One97 Communication had committed to invest in the mutual funds platform in a span of 18 months.
Paytm Money which is based out of Bengaluru is a wholly owned subsidiary of One97 Communications which runs the country’s largest digital payments company Paytm. The platform allows consumers to invest into mutual funds through the ‘direct route’ thereby promising higher returns to investors.
Paytm Money also integrated with Paytm Payments Bank, last month to open wealth management options for bank customers. Through this partnership, Paytm Payments Bank users were able to make their account as the primary bank account on Paytm Money, for investment and redemption of mutual fund investments.
It has raised close to Rs 55 crore between November last year and January 2019. Which means that its parent entity has fulfilled its initial commitment into the subsidiary.
It competes with the likes of Zerodha, ET Money, which is run by Times Internet Limited, a part of the Times group which also publishes this paper, and a couple of early startups like Sequoia India-backed Groww among others.