Paytm Money, one of the largest retail brokerage companies of the country, claims to have reached a client base of 6.6 million, exceeding Zerodha by volume.
The two-year operation of the Vijay Shekhar Sharma company said 70% of its base was for the first time investors, and 60% of the smaller cities.
On the other hand, Zerodha claims to have 3 million users, 65 percent of whom are investors.
According to the firm, 5 million transactions remain easy for Bengaluru-based Zerodha, which has recently reported an estimate of USD 1 billion. This constitutes approximately 15 percent of the regular shareholders of India.
Nithin Kamath, the founder of Zerodha, recently said it was acquiring new users vigorously, adding 250000 different accounts per month.
In contrast, Paytm Money, a late entrant, only began to offer stock-broking services in August despite having been approved in April 2019 by the Securities and Exchange Board of India (Sebi).
Paytm Money currently sells direct funds worth Rs.20 crore every day on the website. Items relating to the National Pension Scheme (NPS) and stocks are also offered.
“Over the past two years, we’ve been enabling users of small towns and cities to invest comfortably by delivering creative, personified service to them, so we’re working to become the first step towards investment so that everyone benefits from technology. We are on the path towards democratization of wealth services for millions of Indians who play a key role in building Atmanirbahar Bharat,”said Varun Sridhar. In July, Sridhar was elected CEO of Paytm Money.
Paytm Money expects its stockbroking service to be launched in full in September and that it expects 100,000 regular trading customers to cross 250,000 customers in the first year within a six month timeframe.
The website currently reports that there are more than 2.5 lakh users registered for the registration of the inventory service.
Paytm Money said in 2019-20 that new monthly SIP registrations had increased by 100% and total monthly investment volumes had risen by 143 percent.
As Paytm Money is borrowing from Zerodha, who has been around for almost a decade, will launch this month’s ‘security loan’ product.
The retail stock brokerage has been operating for nearly two years, with its Non-Banking Finance Company (NBFC) license issued by the Reserve Bank of India.
