Flipkart and Walmart backed Bengaluru based payments platform, PhonePe, is considering applying for an Asset Management Company (AMC) licence. This will allow PhonePe to sell its mutual funds.

PhonePe’s aims to expand its financial services business along with its payments business.

“We may 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,” said co-founder and CEO Sameer Nigam.

This move comes after online brokerage Zerodha’s cofounder Nithin Kamath tweeted on Wednesday that he had received an in-principle approval from the capital markets regulator for setting up AMCs. Phonepe will sell its financial services to the consumers in tier 3 and tier 4 towns where a majority of users are based.

This new consideration of AMC licence can help PhonePe to design cost-effective products.

“We just launched with SIPs using e-mandates on the Unified Payments Interface (UPI). We have seen an explosion of new SIPs, through small-ticket size. We are seeing early product match,” said Nigam.

Sameer Nigam, Rahul Chari and Burzin Engineer founded PhonePe in 2015 in Bengaluru. It is an Indian digital payments and financial services company. The features of PhonePe include sending and receiving money, DTH, utility payments, pay at shops, invest in tax saving funds, buy insurance, mutual funds and a lot more.

PhonePe has come out as the largest UPI app with over 45% market share. Its financial services business recorded over 3.94 billion transactions in the April-June quarter of this year. Also, PhonePe got an insurance brokerage licence and an in-principle Account Aggregator licence.

According to PhonePe’s current online insurance selling it can partner with only three insurance companies per category. With the fresh AMC license, it can distribute insurance products from all insurance companies.