Paytm Money, the wealth management arm of One97 Communications Ltd, said on Sunday that it will allow users to invest and participate in upcoming initial public offerings (IPOs) in India on its platform.
Investors on its platform will have the option to instantly apply for the latest IPOs from their Unified Payments Interface (UPI) ID-linked bank accounts and complete the application process in 3 to 4 days. It will also include an interface to help users change, cancel or re-apply the bids within the IPO window.
It will also aim to introduce features that will allow investors to track upcoming IPOs, view company history, download the draft prospectus, and check the performance of past IPOs. The service will be available both on the Paytm Money app and the website.
"The Indian startup ecosystem has a growing appetite for entering the capital market. Now more companies want to raise capital from a broader set of investors with a public listing. Investors are also increasingly willing to diversify their portfolio. This presents a big opportunity and we intend to make the process more accessible. In the near future, we plan to launch IPO funding, derivatives trading, margin finance, and a host of other value-added features to make investing seamless and convenient," said Varun Sridhar, chief executive officer, Paytm Money.
Paytm Money's competitor Zerodha, has been offering digital applications for IPOs since August 2019. In September, Paytm Money claimed to have 6.6 million subscribers, surpassing Zerodha's 3 million.