Global private equity firm General Atlantic announced Monday that it has raised an additional $100 million ( 820 crore) in PhonePe, the digital payments company owned by Walmart Inc. This investment comes as part of PhonePe’s ongoing fundraising efforts.
General Atlantic has allocated capital to India’s largest fintech startup in terms of UPI transactions, maintaining the same valuation as the previous transaction. Last month, PE Fund Investment Same amount in PhonePe, valuation of the company at $12 billion.
In a statement, General Atlantic revealed that this latest tranche brings the cumulative investment from the firm and its co-investors to $550 million. Earlier this year, in January, the asset management company initially Communications $350 million in PhonePe.
Thus, PhonePe has secured $850 million in funding as part of its target to raise $1 billion, the company confirmed. In addition to this achievement, PhonePe received an investment of $100 million from Tiger Global, Ribbit Capital, and TVS Capital, as well as $200 million from its parent company, Walmart, as part of its broader fundraising efforts.
PhonePe is looking to deploy the funds to strengthen its infrastructure, including the development of data centres, and build a large scale financial services offering in the country, the company said at the time of its $1 billion fundraising announcement. Said.
It also plans to invest in new businesses, including insurance, wealth management, Open Network for Digital Commerce (ONDC)-based purchases, and lending, as well as credit on a large scale in India including UPI Lite and UPI But UPI payments are included.
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PhonePe recently announced its change of domicile to India and spin-off from Walmart-owned e-commerce major Flipkart. The cost of the domicile shift hit the firm’s investors 8,000 crores in taxes. PhonePe was acquired by Flipkart Group in 2016.
PhonePe was founded in December 2015 by CEO Sameer Nigam, Rahul Chari and Burzin Engineer. It offers a range of payment and financial services including mutual funds and insurance products. It is pitted against publicly listed Paytm and Google Pay in India’s digital payments space.
The platform stood as the top UPI app in the month of March as it processed around 47% of all UPI transactions. Overall, it processed transactions worth around ₹407.63 crore 7.07 lakh crores. PhonePe is followed by Google Pay and Paytm. Together, these three platforms account for about 96% of the total market share.
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