Customers of Alibaba-backed Paytm, looking to invest in SIPs through its mutual fund (MF) investments platform Paytm Money will now have an option to start to their SIPs and pay the investment amount later under its new service Register SIP Now, Pay Later.
Paytm Money will send the SIP for registration to the asset management company (AMC) after the first successful payment for SIP in the MF scheme is made, the company said in a blog.
“With this new feature investors who wanted to invest via SIPs, but didn’t have funds at the time of registering, can now choose to make the payment when they have the required funds,” said Paytm Money whole-time director Pravin Jadhav in a statement.
More than 75% of investors on Paytm Money are opting for SIPs, the company said. The service is enabled across all MF schemes from all AMCs.
Paytm Money said that the amount will be automatically invested on scheduled SIP date for investors who have opted for auto-pay for their SIPs. Those choosing for UPI or Net Banking mode of payment will receive reminders for the same.
The company claimed to have acquired more than 1 million users in “few months” of its launch to become the “largest platform for MF investments in India.”
Last month, Paytm had said that its users would now be able to track the performance of their mutual fund investments on its subsidiary portal Paytm Money for free.
Paytm Money claimed to have partnered with 34 asset management companies covering over 94% AUM of the mutual fund industry.
Paytm’s mutual fund arm operates from Bengaluru and has a team of over 250 members Paytm Money, which aims to become a full-stack investment and wealth management services company, offer users mutual fund investments starting with Rs 100 via systematic investment plan or lump sum mode.
The company is also reportedly planning to expand into lending and credit cards services.
Paytm, recently ventured into hotel booking space by acquiring hotel booking app NightStay. It also announced investment of over Rs 500 crore for scaling its operations and expanding its portfolio, the company said.