Have you ever explored ways to apply for an IPO much before it is available in the trade market? Paytm Money, the wealth management arm of Paytm, is trying to capitalise on the excitement created by IPO bound startups in India.
Adding a new feature, Paytm Money now allows users to apply for IPO before the actual IPO of any company opens in the market. The feature is designed to attract lakhs of millennials and young investors who can’t track market movements every day or don’t trade actively due to their other commitments.
With the Paytm Money pre IPO feature, the company is expecting to strengthen its market presence and accelerate the acquisition of users who are willing to dive into the stock trading by investing in upcoming IPOs.
Paytm Money Pre IPO Feature: Big Picture
Food For Thought
After SEBI eased out norms for listing a company in the stock market, many Indian startup unicorns have started gearing up for IPOs. Zomato being the first one, Ola, Paytm, Policy Bazaar, Nykaa, Delhivery, Flipkart, Freshworks and many more are reportedly putting things in place that are required to get themselves listed in the stock market. It has created a sudden IPO rush among millennials and investors who missed the bus of investing in these startups at the seed or angel investment stage.
Be it eCommerce or online food delivery, Indian startup unicorns have, so far, managed to scratch the surface of the market. Just to put things in perspective, retail eCommerce sales in India is estimated to reach $145 billion by 2026, accounting for just 10.3% of the country’s total retail market. There is an enormous opportunity for these startups to grow to a significant stage in the years to come as a large chunk of the market remains untapped.
Still, investing in such startups that are burning millions of dollars in customer acquisition and recording losses much more than their revenue is quite tricky. Paytm Money Pre-IPO feature could bring you a fortune but only if it is used in conjunction with a thorough analysis of the market potential of each startup that you are willing to invest in.
