Paytm has acquired Bengalaru-based savings management startup named Balance.Tech to boost financial services product development and user experience.
The acquisition is further evidence that Paytm is continuing to diversify from being just a payments app and into more of social media app with a payments capability.
Most recently Paytm, one of India’s most widely used mobile wallets, added TV and games in an effort to increase user engagement. Paytm recognizes the need to diversify beyond payments for both political reasons and since it is backed by Chinese e-commerce giant Alibaba who owns 49% of the firm.
While the transaction value was not reported, The Hindu Business Line sites undisclosed industry sources that the transaction is expected to be about $2 million. Balance's staff will join Paytm's product and design teams.
The Balance.Tech startup is best known as a savings management tool that claims to “help you reach your goals in clever little ways.” It does this through a combination of providing advice, goal setting tools, games and a personal assistant. In other words, it’s a gamified personal finance management (PFM) for millennials coupled with a fantastic UX design.