India’s largest digital wallet company Paytm has successfully acquired smart-savings management startup Balance Tech for an undisclosed amount. Reports claimed that the deal has been a complete non-cash deal and may very well be an acqui-hire.
Bengaluru based Balance Tech is latest to join Paytm’s acquisition list. This year the Alibaba and Softbank backed company has bought quite a few promising startups, mostly to consolidate its new business verticals. It first acquired Chennai based online ticketing firm Insider.in and later acquired Cube26.
With Balance Tech, Paytm will hope that its latest acquisition will help in growing its wealth management business. The Noida based startup had forayed into wealth management business earlier this year with an aim to diversify its business beyond digital payment. The company formed a subsidiary firm Paytm Money to look after its wealth management business.
Balance Tech all about Helping People to Save Money
Balance Tech through its chatbot enabled app helps people in inculcating saving habits through several innovative ways. The one innovative way that Balance Tech app uses is to promote mutual fund savings on its platform.
It is probably Balance Tech’s expertise in promoting mutual fund products that Paytm will look to capitalize on.
Paytm few days back claimed that it has been able to attract 5 lakh users on its Paytm Money platform for buying and selling mutual funds. If this claim is indeed true then Paytm has all the reason to feel upbeat, especially since Paytm Money has yet not officially launched its services.
Meanwhile, Paytm is not leaving any stone unturned in aggressively growing its business. Apart from wealth management, the company has already invested millions in its newly launched Paytm Bank and e-commerce business Paytm Mall.
Now to mention that the company was all over the media recently for its ambitious move to start payment in highly competitive Japanese market.