PhonePe has raised $350 million in funding from global growth equity firm General Atlantic at a pre-money valuation of $12 billion.
This investment is the first tranche of the company’s latest fundraising that could witness marquee Global and Indian investors investing up to $1 billion in Walmart-owned digital payments and financial technology company.
As per the firm, the raised funds will be used to make investments in infrastructure, including the development of data centres and help build financial services offerings at scale in the country.
PhonePe | Digital Payments And Financial Technology
Founded by Sameer Nigam, Rahul Chari and Burzin Engineer in December 2015, PhonePe is a mobile payments app offering a slew of financial services to users. It also provides several mutual funds and insurance products on the platform.
Speaking about the development, Sameer Nigam, Founder and CEO at PhonePe, said,
“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.”
Sameer added that the latest funding round would help the firm further accelerate the government of India’s vision of digital financial inclusion for all. The IPO-bound firm claims to have over 400 million registered users, as well as more than 35 million offline merchants, spread across Tier 2 and beyond cities, covering 99% of pin codes in the country.
Commenting on the development, Shantanu Rastogi, managing director and head of India at General Atlantic, said,
“Sameer, Rahul and the PhonePe management team have pursued a mission to drive payments digitalization and 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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