PhonePe receives $100 million in funding, valued at $12 billion

Gadgets Now Bureau / Gadgets Now / Updated: May 22, 2023, 10:27PM IST

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PhonePe receives $100 million in funding, valued at $12 billion

PhonePe has secured an additional $100 million from General Atlantic and co-investors as part of its ongoing $1 billion funding round. This brings their total funding this year to $850 million and has resulted in a valuation of $12 billion.

In January, PhonePe announced that it raised $1 billion in stages. Its valuation is now $12 billion. Since then, the fintech company has received $550 million from General Atlantic, including a $100 million last month. There is also $100 million investment from Tiger Global Management, Ribbit Capital, and TVS Capital, and $200 million from Walmart, its largest shareholder.

PhonePe spun off from Flipkart and became fully Indian-domiciled in 2022 after raising funds.

In its past statements, the company stated that it intends to use the funds to expand its payments and insurance operations in India. It also plans to launch and grow new businesses, such as lending, stockbroking, ONDC-based shopping, and account aggregators, over the next few years.

India accounts for over 8 billion UPI transactions each month. PhonePe and Google's GPay account for over 80% of all UPI transactions, with PhonePe alone comprising 50% of the total value. The company plans to process transactions worth $1 trillion annually.

According to sources familiar with General Atlantic's plans, the New York-based growth equity investor intends to invest $2-3 billion in India over the next 5-7 years. General Atlantic has provided funding to several Indian companies, such as Jio, BillDesk, Byju's, Amagi, NoBroker, and Unacademy, in the past decade.

Last month, PhonePe launched a hyperlocal platform Pincode, built on the ONDC's framework, to boost their e-commerce efforts.

The company which forayed into financial services in 2017 is now piloting digital lending for merchants and adding more partners due to high demand. The platform also offers gold, insurance, mutual funds, bill and utility payments.

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