Flipkart starts MF distribution through its digital payment service PhonePe
After the introduction of new age e-commerce giants Paytm and Mobikwik, there is a massive competition in the online mutual fund distribution.
PhonePe is all set to enter into the financial services, which will start with selling mutual funds through its app. It is the payment and financial services arm of e-commerce major Flipkart. The move comes at a time when the fintech space is seeing heightened action with several startups raising capital in the past two weeks.
PhonePe aims to tap the growing base of millennial looking to manage their wealth. Co-founder and CEO Sameer Nigam informed that company has set up the latest unit, PhonePe Wealth Services, for its business. He also mentioned that while the regulated business like Unified Payments Interface and mobile wallet would be under one unit and the new unfettered business would be under separate units.
PhonePe which was purchased by Flipkart three years back has become one of the most important objective businesses for the concluding, with over 30 million monthly transacting consumers. The entry into the financial services pits the Bengaluru- based company which is once again arch-rival Paytm that entered the space a late preceding year.
Nigam also informed that the company will build the financial services business through partnerships with existing players instead of doing a lot of the work in-house. Paytm has taken the concluding course, producing a standalone team for this business.
The simplicity of making investments or buying insurance on an app is drawing the interest. Recently, an early-stage start-up for such investments, that is raised over $6 million from a bunch of investors.
PhonePe has been steadily moving ahead with its ‘super app’ strategy, mimicking China’s WeChat. It has over 25 large digital apps on its app now, including Goibibo and Oyo. Nigam said the company has brought the leading bunch of travel apps on its super-app, food and other verticals will see similar additions.
Flipkart has committed $500 million to PhonePe, and the concluding gas exhausted around 50% of it. There is transparency over how much of the funds allocated to it have been used. It is now aggressively appending on advertising and promotions to build its offline merchants. Yuvraj Singh Shekhawat, head of the offline organized business at PhonePe, said the company is targeting to include five million more by December.
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