Digital payments and financial services company PhonePe has filed an application with SEBI for a mutual fund license. According to the information available on SEBI’s website, Flipkart-invested PhonePe Private Ltd has applied for mutual fund license on 31 December 2021. Let us also tell you that Sachin Bansal, co-founder of Flipkart, is the founder of Navi Mutual Fund, which had an average asset under management of Rs 92,959.98 crore in the period October-December 2021.
Notably, there are 4 more such companies which are awaiting such approval from SEBI. These include Deepak Shenoy’s Wizemarkets Analytics Pvt. Ltd. also named Capitalmind, Sameer Arora’s Helios Capital, Rakesh Jhunjhunwala’s Alchemy Capital and (Kenneth Andrade) The applications for mutual fund license of Kenneth Andrade-led Old Bridge Capital Management Pvt Ltd are under-processed with SEBI. Apart from this, Angel One and Unify Capital have also applied for this license. Besides, Bajaj Finserv, Zerodha Broking and Frontline Capital Services have already received in-principle approval for mutual fund licenses from SEBI.
There are currently about 45 companies in the Indian mutual fund industry and more companies are preparing to enter this sector. Consolidation has also been seen in this sector in India in recent times. In December, the Indian Asset Management Unit of HSBC Holdings Plc entered into an agreement to buy the mutual fund unit of L&T Finance Holding for Rs 3191 crore.
The Indian mutual fund industry has witnessed rapid growth in the last few years. According to Amfi data, the asset under management of the mutual fund industry has increased from Rs 16.50 lakh crore to Rs 37.34 lakh crore between November 30, 2016 and November 30, 2021. It has seen a doubling of growth in a span of 5 years.