PhonePe Raises $200 Million Investment From Walmart in Its Ongoing Fundraise

PhonePe separated from Indian e-commerce giant Flipkart late last year, when it also shifted its registered headquarters from Singapore to India.

By Reuters | Updated: 18 March 2023 17:27 IST

PhonePe Raises $200 Million Investment From Walmart in Its Ongoing Fundraise

PhonePe said it plans to deploy these funds to build and scale new businesses

Highlights

It has raised $350 million from private equity firm General Atlantic
PhonePe is already India's most valuable payments firm
Walmart cquired a majority share in PhonePe in 2018

Indian digital payments firm PhonePe said on Friday it has raised $200 million (nearly Rs. 1,650 crore) from majority backer Walmart at a pre-money valuation of $12 billion (nearly Rs. 99,000 crore).

PhonePe, already India's most valuable payments firm and among the country's most highly-valued startups, said the investment is part of its ongoing fundraise of up to $1 billion (nearly Rs. 8,250 crore).

It has raised $350 million (nearly Rs. 2,900 crore) from private equity firm General Atlantic and $100 million (nearly Rs. 820 crore) from Ribbit Capital, Tiger Global and TVS Capital Funds in the past two months, at the same $12 billion valuation.

American retail behemoth Walmart, which acquired a majority share in PhonePe in 2018, will continue as a majority investor, the Indian company said, without disclosing its stake.

Despite a funding winter, the Indian digital payments space has been a bright spot due to the popularity of online payments and startups' ambitions to branch into the lucrative financial services space.

PhonePe said it plans to deploy these funds to build and scale new businesses including insurance, wealth management and lending.

PhonePe separated from Indian e-commerce giant Flipkart late last year, when it also shifted its registered headquarters from Singapore to India, with Walmart picking up the nearly $1 billion tax bill for the move.

The relocation, according to some reports, was to ensure an easier entry into the country's highly-regulated financial services industry, especially lending.

© Thomson Reuters 2023

How does the Redmi 12 Pro+ fare against its competitor, the Realme 10 Pro+ 5G? Is it a worthy successor to the Redmi Note 11 Pro+ 5G? We discuss this and more 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.