Digital payments Decacorn PhonePe announced on Monday that it raised an additional $100 million from growth equity firm General Atlantic. In the ongoing $1 billion funding round, this is the fifth capital infusion into the company. The round values the company at $12 billion pre-money.
The round was kickstarted by General Atlantic itself with a $350 million investment in January. Ribbit Capital, Tiger Global and TVS Capital Funds followed in February with an investment of $100 million in the Walmart-backed company. In March, PhonePe raised $200 million from Walmart. General Atlantic invested another $100 million in April.
With this fundraising, PhonePe has now raised a total of USD 850 million of primary capital in the current round of which General Atlantic and its co-investors have contributed $550 million.
PhonePe has been aggressively expanding its use cases after it was hived off from Flipkart in December last year, even entering into commerce recently with a new app, Pincode.
PhonePe ventured into insurance in 2021 after receiving an NBFC-AA licence from the Reserve Bank of India to operate as an account aggregator. The company already allowed users to invest in mutual funds and is now looking to bolster its wealth management playbook by entering the stock broking space too.
PhonePe flourished as a result of the widespread adoption of the Unified Payments Interface. PhonePe cleared 12 billion transactions across UPI, cards, and wallets in the fourth quarter of the previous fiscal year, according to statistics given by the firm in the fourth quarter of the previous fiscal year. The total value of these transactions was Rs 18 lakh crore, with a Rs 1,500 average value.
PhonePe relocated its headquarters from Singapore to India last year. This will ultimately allow the fintech firm to list in the nation.