Payment platform PhonePe is considering applying for an Asset Management Company (AMC) licence, which will let the company enter the Mutual Funds market.
“We may apply for a mutual funds licence. I think we will be able to get there at some point. I fancy a chance of getting there,” PhonePe CEO Sameer Nigam told The Economic Times.
While Nigam did not disclose the timeline for the move but said that there was a good chance of getting there at some point in time, the report added.
“We may apply for a mutual funds licence. I think we will be able to get there at some point. I fancy a chance of getting there,” Nigam said.
It has also widened its offerings since then to include several Mutual Funds and insurance products.
The company already sells mutual funds of other companies with SIPs using e-mandates on the Unified Payments Interface (UPI). It has also has been issued an Insurance Broking licence from the Insurance Regulatory and Development Authority of India (IRDAI).
In 2020, PhonePe entered the insurtech sector with an insurance corporate agent licence, which allowed the company to partner with only three insurance companies per category i.e. health, life and general. With this direct broking license, the company can distribute insurance products from all insurance companies in India.
Zerodha founder Nithin Kamath also announced that the firm has received in-principle approval from the Securities and Exchange Board of India (SEBI) to set up an AMC. Earlier in August, Bajaj Finserv received in-principle approval from SEBI to set up shop in the Rs 35 trillion mutual fund (MF) industry.
Nigam said that the five-year old company, with more than 300 million users, had seen significant growth in its mutual funds and insurance offerings.
“We will be entering and building B2B account aggregator services for the market soon. We are going to enter multiple other verticals. I think that is evolution, that’s business model expansion when you start with payments, these are natural adjacencies,” he added.
PhonePe is a leader in the digital payments space with the highest share of UPI transactions and over 300 million registered users. The company had forayed into financial services in 2017 with the launch of Gold providing users with an option to buy 24-karat gold on its platform.
The platform has over 20 million customers on its platform, and 80 percent of its users are from non-metro cities.