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Walmart-backed Indian digital payments app PhonePe has raised $350 million in a funding round led by private equity firm General Atlantic that valued the company at $12 billion. PhonePe plans to deploy the new funds to make significant investments in infrastructure, including the development of data centers and help build financial services offerings at scale in the country. 

PhonePe also said that it plans to invest in new businesses, including insurance, wealth management, and lending. 

Last month, Flipkart, which is owned by Walmart, and PhonePe today announced the full ownership separation of PhonePe. This move will allow both companies to chart their own growth paths, build their businesses independently, and help unlock and maximize enterprise value for shareholders of the two companies. The PhonePe Group was acquired by the Flipkart Group in 2016.

PhonePe claims to have over 400 million registered users.

“I would like to thank General Atlantic and all our existing and new investors for the trust they have placed in us. PhonePe is proud to help lead India’s country-wide digitization efforts and believes that this powerful public-private collaboration has made the Indian digital ecosystem a global exemplar. We are an Indian company, built by Indians, and our latest fundraise will help us further accelerate the Government of India’s vision of digital financial inclusion for all," said Sameer Nigam, Founder and CEO at PhonePe

“We look forward to delivering the next phase of our growth by investing in new business verticals like Insurance, Wealth Management and Lending, while also facilitating the next wave of growth for UPI payments in India.’’

General Atlantic is a global private equity firm with more than four decades of experience providing capital and strategic support for over 445 growth companies throughout its history. General Atlantic currently has over $73 billion in assets under management.

Commenting on the deal, Shantanu Rastogi, Managing Director and Head of India at General Atlantic, said: “Sameer, Rahul and the PhonePe management team have pursued a clear mission to drive payments digitalization and significantly broaden access to financial tools for the people of India. They remain focused on driving adoption of inclusive products developed on the open API based ‘India stack.’ This vision is aligned with General Atlantic’s longstanding commitment to backing high-growth businesses focused on inclusion and empowerment." 

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