Venture Capital/FinTech: Indian Payments Giant PhonePe Lands $100M
PhonePe is targeting an aggregate fund raise of as much as $1 billion.
PhonePe, one of India’s largest fintech platforms, has raised an additional $100 million in funding from investors Ribbit Capital, Tiger Global, and TVS Capital Funds (TCF), bringing the total amount raised in six weeks to $450 million.
The latest funding follows a primary fundraise of $350 million that closed on January 19th, 2023. The company recently shifted its domicile from Singapore to India, and is now targeting an aggregate fund raise of as much as $1 billion. (PhonePe)
It plans to use the funds to expand its payments and insurance businesses in India and launch new businesses such as lending, stockbroking, ONDC-based shopping, and account aggregators.
“PhonePe is the #1 transaction platform in India with an impressive moat of robust tech capabilities,” said Gopal Srinivasan, Chairman and Managing Director, TCF. “Its strong growth in financial services across payments, insurance and lending with unopened doors to two massive opportunities through ONDC and Appstore, were key reasons in our investment thesis.”
The company expects to receive further investments from global and Indian high net worth investors.
The pre-money valuation of the payments fintech is now at $12 billion.
Founded in 2015, it is said to be India’s largest payments app, and has successfully digitized ~3.5 crore (~35 million) offline merchants spread across Tier 2,3,4 and beyond, covering 99% zip codes in the country.
PhonePe is nurturing ambitions to develop into a financial super app.
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