PhonePe, currently the most valuable payments company in India with an estimated worth of $12 billion (approximately INR 9,84,744 crores), has now accumulated a total of $650 million (roughly INR 5,330 crores) from four rounds of fundraising, which includes the recent investment from General Atlantic and past support from Tiger Global.
On Wednesday, PhonePe, the Indian payments company owned by Walmart, announced that it has secured an extra $100 million (approximately INR 820 crores) from investors led by General Atlantic, as part of its ongoing fundraising effort to reach $1 billion (roughly INR 82,063 crores) to expand into the profitable lending sector.
During the same funding round held in January, General Atlantic had already invested $350 million (approximately INR 287 crores) in PhonePe, the fintech company.
In January, PhonePe aimed to raise $1 billion in several rounds, valuing the fintech firm at $12 billion. PhonePe has since secured additional funding from various investors. This includes $350 million from General Atlantic, $100 million from Tiger Global Management, Ribbit Capital, and TVS Capital, and $200 million from Walmart, its largest shareholder.
PhonePe plans to use the funds to develop new businesses such as insurance, wealth management, lending, and stockbroking. It also aims to expand ONDC-based shopping and account aggregation. The fundraising will aid in driving growth for UPI payments in India. This includes UPI lite and Credit on UPI, further accelerating PhonePe’s expansion.
PhonePe has recently unveiled its new consumer-focused application called Pincode, which will be integrated into India’s Open Network for Digital Commerce (ONDC) framework.
The Pincode app supports local merchants and retailers by connecting consumers to nearby stores digitally. Customers can order products online with discounts, fast refunds, and easy returns. The app bridges the gap between online and offline commerce. It provides convenience to customers and revenue opportunities for local retailers.
