PhonePe is thinking to apply for an Asset Management Company (AMC) licence, which will allow them to sell mutual funds, Cofounder and CEO Sameer Nigam said. PhonePe wants to trade financial services products to customers in tier 3 and tier 4 cities.

Having a mutual fund licence can help it create cost-effective products for its users. PhonePe received an insurance brokerage licence and an in-principle Account Aggregator licence. PhonePe has been trading insurance online with an insurance licence which limited it to associate with only three insurance companies per category.

“We can apply for a mutual funds licence. I think we will be able to get there at some point. I fancy a chance of getting there. We just started SIPs using e-mandates on the Unified Payments Interface (UPI). We have seen a lot of new SIPs, though small-ticket size. We are looking for an early product match,” he said.