Flipkart pumps money in PhonePe to push the start of its Wealth Services business

Flipkart is the leading e-commerce website in India. It received major competition from its American counterpart, Amazon India, but has managed to sustain even then. It is still the number one online shop in India and nothing has toppled it. Its acquisition of Myntra and in turn of Jabong has helped them a great deal. Apart from this it recently entered in a huge deal with Walmart where it sold its rights to the other American giant.

This acquisition of Walmart has helped them grow rapidly and Flipkart’s worth increased to a great extent. Flipkart has been on the rise since its inception, coming with new ideas and ventures almost every other year. They tasted new businesses and were successful in it. Their grocery business or the fashion brand which absolutely shattered other retailers or may it be payments application, everything is always to the point.

They recently started a women’s clothing brand especially targeting the tier 2 audience. Ann Springs is the sixth private label Flipkart has launched. This came when they saw a boom in the market of women’s western wear. The company has similar strategies where it invests and then grows to identify the market even better. It also has a knack of picking up businesses at the right time.

Similarly, their payments application, PhonePe is also one of the first payments apps in the country to use the UPI interface and is doing really well. This application was founded in 2015 and faced little to none resistance from the government as it uses their interface. The application is one of the few apps which has been licensed by the Reserve bank of India.

There was an update that was seen a day or two ago in the application. PhonePe Wealth Services was launched a day earlier. Wealth services in India are doing extremely well. According to the 2018 IBEF report, Indian mutual funds has recorded an insane growth. The industry has reached a mind-boggling $375.9 billion from April to August 2018.

Sensing this, Flipkart quickly came up with PhonePe Wealth Services. Terence Lucien and Aniruddha Patwardhan will be heading this department for the American-owned Indian company. Applications like Paytm and Mobikwik have already forayed into this department of business. Paytm also claims to have a registered user base of 850 thousand since September of this year.

PhonePe Wealth Services, however, will deal with consultancy to financial services such as deposits, mutual funds, and government securities. In addition to this, it will also act as an agent and an advisor to its consumer. It will be headquartered from Bangalore but it is still not sure if the Wealth Services thing will be available through the application or the website. According to the Registrar of Companies (RoC) around $7.42 million were deposited to start the business and there was a paid up capital of $2.85 million.  The company was registered in the month of November but the news broke out just a day or two ago.

– Unmesh Phule

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