PhonePe, a Walmart-backed digital payment platform, confirmed on Wednesday that Share(dot)Market, a division of PhonePe Wealth Broking, will be entering the stock broking business. According to Sameer Nigam, CEO and Co-Founder of the company, the news represents a critical turning point for PhonePe as it completes its lineup of banking and insurance services.
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Share(dot)Market: PhonePe’s Latest Venture
The enterprise had previously this year launched cutting-edge products like PinCode, but Nigam claimed that the latest offering was the greatest announcement of the year.
PhonePe claims that Share(dot)Market enhances discount broking by offering market knowledge and a scalable technology platform called WealthBaskets that is centred on quantitative studies. Retail investors will be enabled to buy and sell stocks, execute intraday trades, purchase Curated WealthBaskets, and make investments in mutual funds using a specially designed web platform and mobile app that will be made accessible.
Following the news that PhonePe had submitted an application for a licence to operate a stockbroking app in 2021, the company’s interest in the market was made public. To strengthen its wealth tech ecosystem, the corporation bought WealthDesk and OpenQ, two investment management platforms with a combined market value of $70 million, last year.
A broad range of investment items, such as equities (intraday and delivery), mutual funds, exchange-traded funds (ETFs), and wealth baskets, will be offered by Share(dot)Market. WealthBaskets are expertly selected assortments of securities and investment products offered by SEBI-registered facilitators that are in line with particular market developments, industry niches, or industry themes. They make it easy and affordable to establish a robust equity profile.
Quantitative Analysis For Brokerage
With this most recent development, PhonePe hopes to capitalise on its user base’s growing engagement in stock trading and investment.
Retail investors’ confidence in the ability of the stock market to increase their wealth has exploded as an outcome of SEBI initiatives like simple enrollment through Aadhaar/Video KYC, quicker settlement times, and enforcement measures safeguarding consumer cash. The constant increase in demat accounts and mutual fund SIPs proves this. By offering quantitative analysis in addition to implementation, Share(dot)Market will add an additional element to stock broking, the business claimed.
The online platform will also include a separate market segment with a user-friendly watchlist monitor for tracking the stock market, indexes, stocks, and sectors. Users of PhonePe can download the app and access the web platform via their cell numbers that are connected to PhonePe. Upon logging in, clients can finish the KYC procedure to set up their demat and broking profiles.
According to Share(dot)Market’s Chief Investment Officer (CIO), Sujit Modi, “Share(dot)Market will attract additional audiences into broking, assisting people to embark on their investing journey with off-the-shelf quant research-led services, including WealthBaskets.”
Potential For Future Growth
The payments gateway intends to differentiate itself in an exceedingly jammed market by providing a substantially reduced brokering price (24 cents or 0.05%, whichever is lower), as well as more comprehensive market knowledge and WealthBaskets, a tech platform powered by quantitative research that will be accessible to users via both a mobile app and the web.
Ujjwal Jain, CEO of Share(dot)Market, commented on its opening by saying, “Our ultimate objective is to deliver all the advantages of affordable broking while generating a long-term benefit for customers as they invest and trade.”
The payment system has been steadily growing to become comparable to super apps like WeChat in China. It is seeking to take share from companies like the bootstrapped firm Zerodha, Groww, which is supported by Sequoia, and Upstox, which is backed by Tiger Global.
As a component of an assortment of investment rounds in which the business has secured an aggregate of $850 million in capital, PhonePe raised a further $100 million from General Atlantic on May 22.
