Acquisition project | Paytm Money

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About the Product

Paytm Money

Easy to use, Low-cost Retail investing and trading platform providing all products Stocks, F&O, Mutual funds, IPOs and NPS in one-app.

Understanding Product

Paytm Money enables customers to Stocks, F&O, Mutual funds, IPOs and NPS in one-app. Paytm Money App is a digital platform that enables users to invest in various financial instruments seamlessly. Launched by Paytm, one of India's leading financial services companies, Paytm Money has transformed the investment landscape by offering a convenient and user-friendly interface for both beginners and experienced investors.

Key Highlights:

1. Simplified Investing: Paytm Money simplifies the investment process by offering a user-friendly interface that allows even novice investors to understand and navigate through various investment options easily.
2. Wide Range of Investments: The app provides access to a diverse range of investment options including mutual funds, stocks, ETFs (Exchange-Traded Funds), IPOs (Initial Public Offerings), and digital gold, catering to the varying risk appetites and investment goals of users.
3. Paperless KYC: Paytm Money streamlines the onboarding process through paperless KYC (Know Your Customer) verification, eliminating the need for physical documentation and making account setup quick and hassle-free.
4. Robust Research and Analysis Tools: The app offers comprehensive research and analysis tools to help users make informed investment decisions. It provides access to detailed insights, historical performance data, empowering users to analyze investment options effectively.
5. Low cost: Paytm Money charges zero commission on mutual fund investments, making it cost-effective for users to invest and grow their wealth without incurring additional expenses. Brokerage charges are Rs 20/order.
6. Advanced trading features: Get access to F&O dashboard with live option chain, FII/DII data etc. You can trade using APIs and do fully automated trading.

About the Users

Paytm Money is current used majorly by Tech-Savvy Millennials. With its seamless digital experience and mobile-first approach, Paytm Money appeals to tech-savvy millennials who prefer conducting financial transactions and managing their investments through smartphones.

Users are long-term investors looking to grow their savings or actively trading to make more money on a daily/weekly basis. A significant portion of Paytm Money users comprises novice investors who are relatively new to the world of investing and trading. These individuals are attracted to the platform's user-friendly interface, simplified investment options, and educational resources that help them understand various financial instruments.

Understanding ICPs

Finalising the ICP for customer acquisition

Among the 3 ICPS, Active traders are the most lucrative customers from a business point of view. We will be targeting these customers for acquisition.

Current Addressable Market

Number of UPI Users India = 30 Cr

Number of Tax Filers India = 8 Cr

Unique Customers with Demat Account = 9 Cr (Growing at 20% / year)

Active Investors = 3 Cr

Active Traders = 80L

For trading, this is the addressable market

TAM = 80L (growing at 20% yearly)

SAM = 50L (nearly 60% of TAM can be among the pool)

SOM = 16L (assuming 20% market share)

Understanding Competition

The overall broking market in India has experienced a paradigm shift towards digital platforms, driven by factors such as increasing internet penetration, smartphone usage, and a growing awareness of financial instruments among the populace. This trend has led to intense competition among brokerage firms, with a focus on innovation, customer experience, and cost-effectiveness.

Zerodha and Groww are the biggest players in the broking market currently.

In summary, Groww's remarkable user growth compared to Zerodha underscores the changing dynamics of the Indian brokerage industry, with a shift towards user-centric, digitally-driven low cost platforms catering to novice users. While Zerodha continues to maintain its stronghold in the market, the rise of Groww highlights the increasing competition and innovation in the online brokerage space, ultimately benefiting investors through greater choice, accessibility, and transparency. Paytm Money hasn’t been able to acquire more users to low spend on marketing overall compared to competitors, which reflects in the data below. Social media content generated and overall brand awareness is low relatively.

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Current Channels used by Paytm Money for customer acquisition

1. Paytm App (widget on home screen, push notifications / emailers)
2. Referral Program
3. Performance Marketing

There is huge room to grow the user base as stated in the above data.

Stage of the Product: Early Stage Scaling

1. Looking to increase market reach
2. Willing to experiment with new different channels
3. 3 experiments across Organic, Paid, Content Loops, Referral, Product Integrations

Experiement 1: Content Loop

User story: Enable active users to share screenshots of profit made and share with their friends or followers on social media

Details:

• Active investors and traders are very active on social media (whatsapp, telegram, twitter, instagram) and like to boast when they make good profits
• Serious investors and traders want to showcase their skills and make an impression to get more authority and followers on social media

Hook:

1. Give badge to Top 10% percentile traders for the month on the platform who are in profits
2. Give Top Investor badge to user when returns on the stock investment are among top 10% percentile returns among the platform users
3. Prompt users to share daily profit for trading publicly with a verified link

Content Creation:

1. System will run a scheduled time everyday to check for relevant users as per above logic
2. It will send notifications to users and generate a nice image with shareable link

Distribution Channel:

1. User will be able to share the link on twitter / instagram (1-to-many)
2. Friends / followers can click the link to see the paytm money page with the profit details and verified badges
3. Other users will see a prompt to open account and start earning badges

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Basic Wireframes

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​https://whimsical.com/content-loop-wireframe-4s81hFDcNydL3KA7xJDcRq

Flow Diagram

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https://whimsical.com/growthx-content-loop-HgM6NDD13j2NeKARZuP6Ds

Experiment 2: Product Integration

https://docs.google.com/spreadsheets/d/1-1tE5OSJGSmBc11Xu6cGtEbX1YsRKLLvxCvKN6qWo9s/edit#gid=465629547

Explanation

• Traders and active investors in India rely on news apps for market insights and updates.
• Active traders use charting tools like Tradingview will enable them to make decisions better. Tradingview has advanced features which are not available with-in the broking apps.
• Integrating Paytm Money into these apps offers a seamless transition from news consumption to investment action.
• Users can access investment options directly within the app, streamlining the investment process.
• Integration enhances user engagement by providing actionable insights alongside investment opportunities.
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How will moneycontrol / economic times benefit?

• We can have a revenue-sharing agreement with these partners. Based on the revenue generated, we can share 20-30% of the revenue with them.
• Their users can get seamless access to investment options directly within the platform.
• Enhanced user engagement as users can act on financial insights instantly.
• Diversification of Moneycontrol's offerings, transforming it into a comprehensive financial hub.
• Provides users with a one-stop solution for financial news and investment opportunities.

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https://whimsical.com/product-integrations-MbwV91ZwatmRwrpL8M8iG5​

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Experiment 3: Paid Ads

1. Among the ICPs, the PMF is strong among traders.
2. More product features are being built for these users.

Approx. LTV and CAC for this cohort

LTV = ARPU X Avg. Duration

APRU = Rs 1000 / Month

Avg Duration = 9 months

LTV = Rs 9000

CAC = Rs 3000

Selecting Audience on Youtube, Twitter and Instagram

Demogprahics

1. Country = India
2. Age = 20-35
3. Gender = Male
4. Language = English
5. Interests = Finance, Stock markets, Trading, Gaming
6. Platform = mobile
7. = Youtube
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Marketing Pitch

Ready to unlock your full trading potential? Join the Paytm Money revolution and trade smarter today! 🚀

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Are you ready to trade smart and take control of your financial future? Look no further! Paytm Money is here to revolutionize your trading experience with an array of unbeatable features tailored to elevate your trading experience.

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🔥 FREE Demat Account & ZERO Annual Maintenance Fee: Say goodbye to unnecessary charges eating into your profits! With Paytm Money, enjoy the luxury of a FREE demat account coupled with ZERO annual maintenance fees, allowing you to trade without worrying about hidden costs.

📊 Powerful Tools at Your Fingertips: Gain a competitive edge with our comprehensive suite of trading tools. From our dynamic F&O Dashboard to real-time FII/DII Data, Heatmaps and Live Option Chain, stay ahead of the curve with crucial insights right at your fingertips.

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📅 Seamless Trading Experience: Maximize your potential with features designed to simplify your trading journey. Our platform supports P&L Calendar for effortless tracking, Tradingview charts for in-depth analysis, GTT Orders for strategic planning, and even Algo Trading via API integration for advanced users.

🛠️ Trade Better with Multiple Tools: Take your trading to new heights with our diverse range of tools, including Quantman and Tradetron. Whether you're a seasoned trader or just starting out, our arsenal of resources empowers you to make informed decisions and optimize your trading strategies like never before.