Indian fintech platform PhonePe has raised an additional $200 million in investments from Walmart, bringing the company closer to its $1 billion target fundraise in capital.
This latest investment was made at a pre-money valuation of $12 billion, adding to the $650 million funding aid PhonePe has already received from various global investors.
The company plans to use these investments to build and scale new businesses such as insurance, wealth management, lending, stockbroking, ONDC-based shopping, and account aggregators.
The fundraise will also help the company accelerate the growth of UPI payments in India, including UPI lite and credit on UPI.
PhonePe aims to provide digital inclusion for both consumers and merchants and has successfully digitized 35+ million offline merchants across Tier 2,3,4, and beyond, covering 99% of the pin codes in the country.
The company has over 450 million registered users, meaning that more than one in three adult Indians are now using PhonePe.
In 2017, the fintech firm expanded into financial services to provide users with safe and convenient investing options and has since introduced several mutual funds and insurance products, offering every Indian equal opportunity to access services and unlock the flow of money.
According to Sameer Nigam, Chief Executive Officer and Founder of PhonePe, the company started the fundraise following its domicile shift to India last year and expects more investments to come soon. The fintech firm plans to make announcements accordingly.
Judith McKenna, President and CEO for Walmart International, expressed confidence in PhonePe’s future and its expansion of offerings, providing access to financial services for Indians at scale.
India is one of the world’s most digital, dynamic, and fastest-growing economies, making Walmart excited to support PhonePe’s operations in the country.
PhonePe’s fundraise is projected to help it turbo-charge the next wave of growth for UPI payments in India, including UPI lite and credit on UPI. The company’s goal is to build new offerings for Indian consumers and merchants while enabling financial inclusion across the nation.
