PhonePe has now raised nearly half of the targeted $1bn of fundraise within six weeks, following its domicile shift to India as well as its full separation from Flipkart
PhonePe has raked in an additional $100m at a pre-money valuation of $12bn. (Credit: Mohamed Hassan from Pixabay)
Indian mobile payments app PhonePe has secured an additional $100m in primary capital from Ribbit Capital, TVS Capital Funds, and Tiger Global, at a pre-money valuation of $12bn.
The new investment comes nearly a month after the fintech company’s primary fundraise of $350m involving growth equity firm General Atlantic.
The investment from General Atlantic is the first tranche of a total fundraise of up to $1bn that PhonePe had embarked on in January 2023, following its domicile shift to India as well as its full separation from Flipkart.
PhonePe has raised nearly half of the amount within six weeks and in the due course anticipates more investments from major global and high net worth Indian investors.
Ribbit Capital founder Micky Malka said: “PhonePe lives by the same values as we do at Ribbit. We both believe that better money makes life better. PhonePe’s relentless pursuit of this principle in serving consumers and businesses all across India is a mission to live for.”
The mobile payments app intends to utilise the funds for scaling up its payments and Insurance businesses in India. Apart from that, it will use the proceeds to introduce and aggressively scale new businesses such as stockbroking, lending, open network for digital commerce (ONDC)-based shopping and account aggregators over the coming few years.
PhonePe CEO and founder Sameer Nigam said: “I would like to thank Ribbit Capital, Tiger Global and TVS Capital Funds for reposing their faith in us. We are privileged to have a great set of leading global investors, both existing and new, who believe in our mission of building massive technology platforms to bring at-scale financial and digital inclusion in India.’’
Founded in late 2015, PhonePe was acquired in the following year by Indian e-commerce firm Flipkart. American retailer Walmart acquired a majority stake in Flipkart in 2018 for $16bn.
In December 2022, Flipkart hived off PhonePe partially into a separate entity for accessing dedicated capital. As a part of the hive-off, the payments app raised $700m in primary capital at a post-money valuation of $5.5bn from Flipkart’s existing investors led by Walmart.