Walmart, which continues to be a majority investor in the Bengaluru-based firm and has secured an additional $200 million in primary capital, has invested in the FinTech platform PhonePe.
Since January, the business has raised $650 million from many international investors, including TVS Capital Funds, Tiger Global, and Ribbit Capital. The most recent fundraising is a part of PhonePe’s continuous effort to secure up to $1 billion in cash as a result of the company’s relocation to India last year. The business anticipates more investments, which will be disclosed when they become available.
Similar to earlier tranches, PhonePe valued the fresh funding at $12 billion prior to closing.
PhonePe stated in a news statement that it intends to use these funds to launch and grow new companies in the insurance, wealth management, lending, stockbroking, ONDC-based shopping, and account aggregator sectors. The money will also assist PhonePe in accelerating the next phase of growth for UPI payments in India, including Credit on UPI and UPI lite.
PhonePe claims to have reached an annual TPV (Total payment value) run rate of $1 trillion with more than 400 million registered users (Rs 84 lakh crore approximately). It also dominates the UPI industry, where it has a value market share of more than 50%. In terms of transaction volume and value, Google Pay and Paytm are far behind.
PhonePe’s revenue increased 2.4X to Rs 1,646 crore for the fiscal year that ends on March 31, 2022, from Rs 690 crore the previous year. The company’s losses for the most recent fiscal year increased by just 16.5% to Rs 2,014 crore. According to the company’s valuation report, which can be read through a regulatory filing, it has further strengthened its financial sheet and generated Rs 1,913 crore in revenue in the first nine months (January to September) of 2022.
At this rate, PhonePe will probably outperform its FY22 figures in FY23.