5Paisa.com, the fastest growing discount broking company, an arm of the IIFL Group is keenly pursuing growth in the Karnataka market. The company which has grown at a rapid pace of 150% over the last financial year, started its first fully operational branch office in Bengaluru city which houses close to 100 employees.
The company competes with top discount brokers such as Zerodha, RKSV, Samco Securities, SAS Online, Trade Smart Online among others on equity side and online insurance portals such Policybazar.com and Coverfox for selling insurance through its platform.
5paisa.com has an interesting mix of customer numbers across the markets it has penetrated until now with many of its customers coming in from Tier II and III cities. The state of Karnataka contributes 15% of customers to the company with 35% to 40% of them coming from Bengaluru. The company will now also focus on other Tier II and III cities such as Mangalore, Udupi, Dharwad, and Shimoga which has a sizeable number of investor population.
Targeting the DIY (Do-it-yourself) customer segment, which prefers least cost for various financial products, it is positioned as a one-stop online shop for all investment and insurance needs. It has a robo-advisory platform where it can address all the financial needs of an individual and help plan buying Mutual Funds. One can also buy insurance (life, health and motor) via this platform.
The firm offers trading, investment and insurance products online at the cheapest rate amongst all other companies in this space. It charges brokerage of Rs. 10 per order, which is lowest in the industry. Unlike its peers in the industry, 5paisa also provides research calls to its clients, which no other player in this space provides at such a low cost. Moreover, another USP of 5paisa is their e-KYC account opening process where one can open a trading account in a matter of just 10 minutes, absolutely paper-less and hassle-free.
Commenting on its plans for the Tier II and III cities market, Prakarsh Gagdani, CEO of 5Paisa.com, India's only financial products marketplace, said “we are the only company offering most affordable discount broking besides mutual funds and insurance products from across the industry. In addition to this our robo-advisory services add immense value to our customers who can rely on their personal judgment while still enjoying the benefits of technology driven advice for their investment needs”.
