PhonePe Diversifies into Stock Broking with Launch of Share.Market App
- ByStartupStory | August 31, 2023
PhonePe, a fintech company backed by Walmart, is entering the stock broking industry with the launch of a new app called Share. Market. This app will operate under PhonePe’s subsidiary, PhonePe Wealth Broking Pvt. Ltd, and will be led by Ujjwal Jain and Sujit Modi, the co-founders of WealthDesk and OpenQ, wealth management platforms that were acquired by PhonePe in May 2022 for $75 million. The creation of the new app aims to strengthen PhonePe’s wealth management services and offer a dedicated platform for stock trading.
Share. The market will function as a discount broking app, allowing retail investors to trade and invest in stocks (both intraday and delivery), mutual funds, Exchange-Traded Funds (ETFs), and curated investment collections called “WealthBaskets.” It enters a competitive landscape with established players such as Zerodha, Groww, Paytm Money, and Upstox, along with traditional brokerage firms launching digital platforms. PhonePe plans to leverage its competitive pricing, extensive reach, and distribution capabilities to attract users.
The app’s distinct feature is its emphasis on market intelligence and quantitative research-based “WealthBaskets,” which are curated collections of stocks and investment products aligned with specific themes or sectors. PhonePe aims to provide investors with valuable insights and research to encourage participation in the market.
“[The number] of traders has increased 6X in the last year. The intent to enter the capital market is there but a lot of potential investors get discouraged due to losses and risk. We will work on providing that intelligence and quantitative research to get people into the market,” said Sameer Nigam, Co-founder and CEO at PhonePe.
“Our goal is to offer the benefits of discount broking while creating lasting value for our customers as they invest and trade. We will continue to invest in advanced technology, data, research, and immersive experiences to offer these benefits at scale and drive this new era of value-led discount broking coupling intelligence with broking,” said Ujjwal Jain, CEO, of Share. Market.
Share. Market will offer tools to track stock market performance, indices, stocks, and sectors, along with a watchlist tracker and other DIY resources. The brokerage charges have been set at Rs 20 per executed order (for both delivery and intraday), with a one-time onboarding fee of Rs 199. There is no brokerage fee for trades up to Rs 400, and WealthBasket transactions have no brokerage charge.
PhonePe initially entered the wealth management and financial services sector in 2018 with PhonePe Wealth Services. Over time, it introduced various offerings including third-party mutual funds, insurance, tax-saving funds, liquid funds, and digital gold. The company had applied for a mutual funds license with SEBI in December 2021 but later withdrew the application, focusing more on distribution and platform services.
“We pulled back our applications because we realized our calling is on the distribution of services and platform side. We are not natural manufacturers of products, including an AMC (Assets Management Company). So, we are not an AMC applicant anymore,” Nigam explains.
Following its separation from Flipkart and its return to India, PhonePe has been expanding its services across payments, lending, wealth management, and e-commerce. It recently raised $1 billion to support its growth plans, with General Atlantic, Walmart, Ribbit Capital, Tiger Global, and TVS Capital Funds participating. The company, with a 50% market share in UPI payments, achieved an annualized total payment value run rate of $1 trillion in March 2023 and claims to have over 450 million registered users and 36 million digitized offline merchants.
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