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Business News/ Companies / Start-ups/  PhonePe raises $350 mn from General Atlantic at $12 bn valuation
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PhonePe raises $350 mn from General Atlantic at $12 bn valuation

Founded in December 2015 by Sameer Nigam, Rahul Chari and Burzin Engineer, PhonePe offers a slew of financial services to users. PhonePe was acquired by Flipkart Group in 2016. Last financial year, PhonePe’s consolidated operating revenue more than doubled to ₹1,646 crore from ₹690 crore in FY21.

Sameer Nigam, founder & CEO, PhonePe. (Photo: Mint)Premium
Sameer Nigam, founder & CEO, PhonePe. (Photo: Mint)

NEW DELHI: Walmart-owned PhonePe on Thursday said it has $350 million in its latest funding round from General Atlantic at a pre-money valuation of $12 billion.

The investment is the first tranch of the company’s latest fundraise that could see marquee global and Indian investors put in up to $1 billion in the fintech firm.

PhonePe plans to deploy the funds to make investments in infrastructure, including development of data centres and build financial services offerings at scale in the country.

“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,’ said Sameer Nigam, founder and chief executive officer at PhonePe.

The IPO-bound company also plans to invest in new businesses, including insurance, wealth management, and lending. The funds will also help the company scale UPI payments in India, including UPI lite and credit on UPI. “...our latest fundraise will help us further accelerate the government of India’s vision of digital financial inclusion for all," Nigam added.

Founded in December 2015 by Sameer Nigam, Rahul Chari and Burzin Engineer, PhonePe offers a slew of financial services to users. It provides several mutual funds and insurance products on the platform. It pits against public listed Paytm as well as Google Pay in India’s digital payments space.

PhonePe was acquired by Flipkart Group in 2016. The company claims to have over 400 million registered users as well as more than 35 million offline merchants spread across tier two and cities beyond, covering 99% of pin codes in the country.

Last financial year, PhonePe’s consolidated operating revenue more than doubled to 1,646 crore from 690 crore in FY21. However, its loss jumped to 2,014 crore from 1,728 crore in the previous fiscal.

“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," said Shantanu Rastogi, managing director and head of India at General Atlantic.

The latest fundraise follows company’s recently announced change of domicile to India and full separation from Flipkart. The separation 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, it said in a release.

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Published: 19 Jan 2023, 11:33 AM IST
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