PhonePe Bags $100 Mn New Tranche From General Atlantic

Digital payments Fintech company PhonePe has reported raised a fresh USD 100 million new tranche of its ongoing USD 1 billion fundraising, at a pre-money valuation of USD 12 billion from General Atlantic and its co-investors.

As per reports, this is in addition to the USD 350 million raised by PhonePe from General Atlantic in January, with an ongoing target to raise a total of USD 1 billion and so far the company has successfully raised USD 750 million. It has previously raised USD 100 million from Tiger Global, Ribbit Capital and TVS Capital, along with USD 200 million from its parent firm, Walmart.

While PhonePe is looking to utilise the funds for infrastructural boost, including the development of data centres and financial services offerings at scale, it also plans to invest in new businesses, including wealth management, insurance, Open Network for Digital Commerce (ONDC) based shopping, and lending. It further aims to scale UPI payments in India, including UPI lite and credit on UPI.

The fundraisings also track PhonePe’s domicile change to India from Singapore and its spin-off from Walmart-owned e-commerce major Flipkart. The shift to an Indian domicile in October last year was a step to list on the Indian bourses and create shareholder and ecosystem value locally. While the company was supposed to go public in 2023, it has now put the listing plans on hold.

PhonePe was incorporated in December 2015 and was acquired by Flipkart in 2016. Later both companies got separated for their individual growth and to maximize value for shareholders.