Paytm Money, an Indian digital brokerage platform, today announced the launch of an innovative feature that allows users to apply for IPOs before the actual IPO opening in the market.
The Paytm Money users can now submit IPO applications with a single click, apply through the shareholder category, and track live IPO subscription numbers, the company said in a statement.
It is the first digital broker in India to provide this functionality and expects it to significantly increase retail user participation in IPOs via its platform. Zomato is the first IPO on Paytm Money launched with this feature.
Speaking on the development, Varun Sridhar, CEO of Paytm Money said, “Interest in IPOs has surged over the last couple of months, and we have seen cases where users have missed out from applying because of issues like tight schedules during market hours, and demand-led processing delays in the markets. We wanted to make the lives of our users easier and ensure that they don’t miss out on good opportunities.”
A large proportion of the investing community does not trade actively and is likely to be busy during market hours, missing out on some of these IPOs, the “Pre-IPO Open application” feature has been specifically designed to make their lives easier.
Once the “pre-Open IPO Application” feature is enabled, a user can place an IPO order 24 hours a day, seven days a week. The order will be recorded on Paytm Money's system and send to the exchange for processing.
To ensure a smooth experience, the user is kept informed of the status of her application throughout the journey.
As this feature gains traction, it may be possible to evenly distribute Pre-Open IPO Applications during market hours, reducing the load on exchanges and payment gateways and ensuring a better experience for all market participants.
Previously, the traditional IPO application process was built around timing, and users applied for an IPO only during specific market hours over a three-day period.
The company has also launched a slew of other advanced features in an effort to provide its users with the most comprehensive IPO application experience possible. The Paytm Money users can now submit IPO applications with a single click, apply through the shareholder category, and track live IPO subscription numbers.
Paytm Money is Paytm's Investment & Wealth Management division, and it is India's largest payments company. It is One97's fourth consumer brand, following Paytm, Paytm Mall, and Paytm Payments Bank- a wholly-owned subsidiary of One97 Communications.
Its mission is to make investment and wealth management easier and more accessible to millions of Indians.
Paytm Money has raised a total of $19 million in four rounds of funding. Their most recent funding came on November 20, 2020, in the form of a Venture-Series Unknown round, according to Crunchbase.
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