Walmart-owned Flipkart's digital payments service PhonePe Pvt Ltd, which competes with Google Pay and Paytm, has received Rs 150 crore fund infusion from its Singapore-based parent company PhonePe Pvt Ltd, Singapore, according to regulatory filings accessed by Tofler.
In February, PhonePe had received Rs 427 crore fund infusion from the parent company. In FY20, PhonePe had received a fund infusion worth Rs 1,710 crore (around $240 million) from the company through three rounds of funding.
PhonePe had allotted 1,98,755 equity shares on a rights basis on 2nd December. The shares have a face value of Rs 10/- and a securities premium of Rs 7,537/- per share aggregating to Rs 150,00,03,985 to PhonePe Private Limited, Singapore on a rights basis.
Quickroutes International Private Limited, the other shareholder of the Company, did not participate in the rights offer. The company cancelled the shares which were not taken up/subscribed by the non-participating shareholder.
As per the filing, the new equity shares allotted to PhonePe Private Limited, Singapore, shall rank pari-passu with the existing equity shares of the Company as to dividend, voting, or otherwise and be subject to such other statutory provisions as may be applicable.
Recently, Flipkart had partially spun-off PhonePe. The company had said that the partial spin-off also provides PhonePe an opportunity to constitute a new Board of Directors focused on supporting its development, and to create a tailor-made equity incentive or ESOP program for its employees.
Flipkart had also stated that PhonePe will be raising $700 million in primary capital at a post-money valuation of $5.5 billion from existing Flipkart investors led by Walmart. Flipkart will remain PhonePe’s majority shareholder, and the two businesses will retain their close collaboration.
In just four years since its founding, PhonePe has crossed the 250 million registered user milestone, with over 100 million monthly active users (MAU) generating nearly one billion digital payment transactions in October 2020.
As reported earlier, e-commerce giant Amazon India's payments unit Amazon Pay India has seen a 55.4% increase in its advertising promotion expenses at Rs 2212.7 crore for the fiscal ended 31st March 2020 compared to Rs 1423.8 crore in the previous fiscal.
According to Registrar of Companies filing - shared by market intelligence firm Tofler, total expenses excluding depreciation jumped to Rs 3234.8 crore from Rs 1994.9 crore. The company has widened its net loss to Rs 1,868.5 crore from Rs 1,160.8 crore in the previous fiscal. The company's operating loss stood at Rs 1918.7 crore.
Amazon Pay, which competes with Paytm, Flipkart's PhonePe, and Google Pay, has seen a 64% growth in its revenue at Rs 1,370 crore compared to Rs 834.5 crore. The company earns revenue from rendering of services primarily represents transaction fees/commission fees earned from payment processing and joint promotion services.
As per the filing, Amazon Pay India has received Rs 2,705 crore in the financial year 2020 from Amazon Corporate Holdings Private Limited and Amazon.com.incs Limited.