As part of its ongoing round, the global private equity firm General Atlantic has contributed an additional $100 million to the fintech platform PhonePe. This happened a month after the $100 million round was raised.
Since January of this year, General Atlantic and its co-investors have invested a total of $550 million. With this funding tranche, that amount has increased. In the current round, which is anticipated to close at $1 billion, PhonePe has now raised a total of $850 million in primary funding.
The new funds were raised at a $12 billion pre-money valuation, similar to earlier tranches.
PhonePe expects to become profitable in its core business by 2023 and is placing significant bets in the areas of lending, cross-selling, gateway services, and now e-commerce. The company, which has more than 450 million registered users, asserts that it has digitalized 35 million offline retailers spread across tier II, III, IV, and beyond.
According to the business, which processes over 45% of all transactions on the BBPS platform, it is the market leader in the Bharat Bill Pay System (BBPS). The business also expanded into mutual funds and insurance services.
PhonePe fully separated from the online retailer Flipkart in December 2022 and established its corporate headquarters in India.
Similar to PhonePe, a number of other fintech companies are moving their headquarters to India, including Razorpay and Groww.
PhonePe increased its scale by 2.4X in FY22, going from Rs 690 crore in FY21 to Rs 1,646 crore. According to Fintrackr’s analysis, the fintech company’s losses during FY22 exceeded Rs 2,000 crore. Furthermore, in the first nine months of 2022, PhonePe reported revenue of Rs 1,913 crore.
