PhonePe, the Indian digital payment and financial services unicorn, has raised an additional $200 million in primary funding from Walmart at a pre-money valuation of $12 billion. This brings the total amount raised by PhonePe to $650 million from several global investors.
The company expects to announce further investments in due course. The fresh funding is part of the company’s ongoing fundraise of up to $1 billion in capital following its domicile shift to India last year. Earlier in January, the fintech company had raised $350 million in funding at a pre-money valuation of $12 billion from private equity firm General Atlantic, along with other Indian and global investors.
“We would like to thank Walmart, our majority investor, for their continued support of our long-term aspirations. We are excited about the next phase of our growth as we build new offerings for Indian consumers and merchants, along with enabling financial inclusion across the nation,” said Sameer Nigam, CEO and Founder of PhonePe.
The fresh investment will be deployed to build and scale new businesses like Insurance, Wealth Management, Lending, Stockbroking, ONDC-based Shopping and Account Aggregators. The fundraise will also help PhonePe turbo-charge the next wave of growth for UPI payments in India, including UPI lite and Credit on UPI.
‘’We would like to thank Walmart, our majority investor, for their continued support of our long-term aspirations. We are excited about the next phase of our growth as we build new offerings for Indian consumers and merchants, along with enabling financial inclusion across the nation.’ Sameer added.
The company plans to deploy the funding to build and scale new businesses like insurance, wealth management, lending, stockbroking, ONDC-based shopping, and account aggregators. It will also help the unicorn’s fuel the next wave of growth for UPI payments in India, including UPI Lite, and Credit on UPI.
PhonePe’s funding comes at a pre-money valuation of $12 billion
“We are excited about PhonePe’s future and have confidence in how it continues to expand its offerings and provide access to financial services for Indians at scale. India is one of the world’s most digital, dynamic, and fastest-growing economies, and we are pleased to have the opportunity to continue to support PhonePe,” said Judith McKenna, President and CEO of Walmart International.
The funding round will help PhonePe strengthen its position in the Indian fintech market, which has seen rapid growth in recent years. The company is expected to face stiff competition from other players in the market, including Paytm, Google Pay, and Amazon Pay.
The unicorn success can be attributed to its ability to offer a wide range of payment and financial services, including bill payments, mobile recharges, and money transfers, all in one place. With the fresh funding, the company plans to expand its offerings and deepen its penetration in the Indian market.
The latest funding round is a testament to the growing potential of the Indian fintech market and the company’s ability to tap into that potential. The additional capital will help PhonePe further strengthen its position in the market and expand its offerings to provide greater financial inclusion to Indian consumers and merchants.
