PhonePe is the digital payments company owned by Walmart Inc.

Private equity firm General Atlantic has invested an additional $100 million (₹820 crore) in PhonePe, the digital payments company owned by Walmart Inc (NYSE: WMT). This funding is part of PhonePe’s ongoing fundraising efforts and maintains the company’s valuation at $12 billion. General Atlantic’s latest investment brings its total investment, along with co-investors, to $550 million. Previously, the firm had invested $350 million in PhonePe in January.

PhonePe has now secured a total of $850 million in funding, aiming to reach its target of $1 billion. In addition to General Atlantic’s investment, PhonePe received $100 million from Tiger Global, Ribbit Capital, and TVS Capital, as well as $200 million from its parent company, Walmart. (Mint)

The payments fintech intends to utilize the funds to enhance its infrastructure, which encompasses the development of data centers, as well as to broaden its range of financial services in India. The company also plans to invest in new businesses such as insurance, wealth management, and digital commerce, while scaling its UPI payment services, including UPI lite and credit on UPI.

PhonePe, founded in 2015, is a leading player in India’s digital payments market, competing against Paytm and Google Pay. In March, it processed nearly 47% of all UPI transactions, totaling 407.63 crore transactions worth ₹7.07 lakh crore.

The company recently changed its domicile to India and separated from Flipkart, resulting in significant tax expenses for its investors.

Related Story:  Indian Payments Giant PhonePe Lands $100M