PhonePe Gets $100 Million in Additional Funding, Total $450 Million Raised in Six Weeks

New investors include Ribbit Capital and TVS Capital Funds with participation from existing investor Tiger Global.

By Press Trust of India | Updated: 14 February 2023 18:25 IST

PhonePe Gets $100 Million in Additional Funding, Total $450 Million Raised in Six Weeks

Photo Credit: PhonePe

PhonePe plans to deploy these funds to scale up its payments, insurance businesses in India

Highlights

PhonePe started its latest fundraise with a target of $1 billion
Digital payment sector in the early stages, significant growth potential
PhonePe has raised $450 million within six weeks from leading investors

Fintech firm PhonePe has raised another $100 million (about Rs. 828 crore) in primary capital from new investors Ribbit Capital and TVS Capital Funds with participation from existing investor Tiger Global, at a pre-money valuation of $12 billion (roughly Rs. 99,400 crore), the company said on Tuesday. This follows a $350 million (roughly Rs. 3,000 crore) primary fundraise by the company on January 19 from General Atlantic.

"PhonePe started its latest fundraise with a target of raising up to $1 billion (roughly Rs. 8,300 crore) in capital, post its domicile shift to India. With this second tranche, it has already raised $450 million (roughly Rs. 3,800 crore) within six weeks from leading investors. The company expects further investments from leading global, as well as prominent high net worth Indian investors in due course," it said in a statement.

PhonePe plans to deploy these funds to scale up its payments and insurance businesses in India, as well as to launch and aggressively scale new businesses like lending, stockbroking, ONDC-based shopping and account aggregators over the next few years.

PhonePe Launches Support for Cross-Border UPI Payments: Report

"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," PhonePe CEO and Founder Sameer Nigam said.

Ribbit Capital Founder Micky Malka said PhonePe's values are in sync with 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," Malka said.

PhonePe Raises $350 Million, Becomes India's Most Valuable Payments Firm

Tiger Global's Partner Scott Shleifer said the firm is excited to continue its partnership with PhonePe as they lead the digital payments sector in India which is still in the early stages with significant growth potential ahead.

"PhonePe is the number 1 transaction platform in India with an impressive moat of robust tech capabilities. Its strong growth in financial services across payments, insurance and lending with unopened doors to two massive opportunities through ONDC and Appstore, were key reasons in our investment thesis," TVS Capital Funds Chairman and Managing Director Gopal Srinivasan said.

The OnePlus 11 5G was launched at the company's Cloud 11 launch event which also saw the debut of several other devices. We discuss this new handset and all of OnePlus' new hardware on Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.

Affiliate links may be automatically generated - see our ethics statement for details.

Comments

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.