Paytm has applied for a license to start money market fund in India, according to a latest report from Bloomberg. The latest news comes a month after the leader in digital wallet business launched Paytm Payments Bank. The money market mutual fund will allow users to invest cash in short term debt securities and earn interest. Currently, there is no word on the details about the interest rate.
Paytm is seeking license that will enable the company to increase revenues from financial services. In addition to the Payments Bank, the company started digital trading in gold. Paytm founder Vijay Shekhar Sharma recently told Bloomberg that he plans to invest $1.6 billion over the next five years to expand the bank’s wealth management, insurance and lending businesses. The company wants to replicate the business model of Alibaba which has set up Yu’E Bao Fund that has become the world’s largest money market fund with over $165 billion under management.
Vijay Shekhar Sharma holds 51% stake in Paytm Payments Bank. Last month, Paytm raised $1.4 billion from SoftBank.