PhonePe has raised an additional $100 million at a $12 billion valuation from General Atlantic and its co-investors, a fresh round of its ongoing $1 billion funding round, bringing its total raised this year to $850 million.
In January of this year, PhonePe announced that it had raised $1 billion in tranches at a valuation of $12 billion. The fintech unicorn has since raised $550 million from General Atlantic, $100 million from Tiger Global Management, Ribbit Capital and TVS Capital, and $200 million from its largest shareholder, Walmart.
PhonePe’s funding comes after the company announced in December that it was spinning off from e-commerce giant Flipkart. The Flipkart spin-off also completes PhonePe’s transition to a fully Indian-domiciled company in 2022.
In previous statements, the company said that it plans to use the funds to expand its payments and insurance businesses in India and to launch and aggressively scale new businesses such as lending, stock broking, ONDC (Open Network for Digital Commerce)-based shopping, and account aggregators for the next few years.
In April, it officially launched Pincode, a new consumer-facing app that will become part of the ONDC framework to strengthen its e-commerce business.
Founded in 2015 by former Flipkart executives Nigam, Rahul Chari and Burzin Engineer, the fintech company has over 400 million registered users and is the market leader in Unified Payments Interface (UPI) transactions. The company has a 47% market share in terms of monthly UPI volume.
In 2017, the company expanded into financial services, allowing customers to buy gold, insurance and mutual funds on its platform and pay bills and utilities.