Wednesday, November 29, 2023
HomeBusiness NewsStartupsIndia's PhonePe tops $12 billion valuation in new funding • TechCrunch

India’s PhonePe tops $12 billion valuation in new funding • TechCrunch

[ad_1]

PhonePe’s valuation has more than doubled to over $12 billion in a new funding round as the Indian fintech giant readies for life without parent firm Flipkart. The Bengaluru-headquartered startup said it has raised $350 million and anticipates raising up to another $650 million as part of the round in a remarkable feat at a time when fundraising activity has slowed down globally as investors become cautious.

General Atlantic led the first tranche of the investment. The company has not assigned a name to the funding round, but said it was valued at $12 billion pre-money. TechCrunch reported last month that PhonePe was finalizing a large funding round at $12 billion pre-money valuation.

$12 billion is a staggering valuation for PhonePe, which was valued at $5.5 billion in late 2020. PhonePe currently does less than $450 million in annual revenue. Publicly-traded rival Paytm, which expects to hit $1 billion in revenue in the financial year ending March 2023, currently has a market cap of $4.2 billion.

Walmart, a majority investor in PhonePe, is expected to participate in the current funding round, according to a source familiar with the matter.

PhonePe, to be sure, is a clear leader in the the mobile payments market on UPI, a network built by a coalition of retail banks in India. UPI has become the most popular way Indians transact online, and processes over 7 billion transactions a month. Seven-year-old PhonePe commands about 40% of all these transactions. The startup says it has over 400 million registered users and more than 35 million offline merchants rely on the platform.

See also  HOLY COW: Grocery delivery startup Milkrun is dead, $86 million later, aged 19 months

A concern for PhonePe’s growth was Indian regulator enforcing a market cap check on each player, but the deadline for the new guidelines was extended last month and now won’t come into effect until 2025, giving PhonePe another two years of fast-growth.

“I would like to thank General Atlantic and all our existing and new investors for the trust they have placed in us. PhonePe is proud to help lead India’s country-wide digitization efforts and believes that this powerful public-private collaboration has made the Indian digital ecosystem a global exemplar. We are an Indian company, built by Indians, and our latest fundraise will help us further accelerate the Government of India’s vision of digital financial inclusion for all,” said Sameer Nigam, founder and chief executive of PhonePe, in a statement.

“We look forward to delivering the next phase of our growth by investing in new business verticals like Insurance, Wealth Management and Lending, while also facilitating the next wave of growth for UPI payments in India.’”

PhonePe was founded in 2015 and within a year was acquired by e-commerce giant Flipkart. The two parted ways last month and now Flipkart no longer owns a stake in the payments firm. The separation will have some impact on Flipkart’s valuation. In July last year, Flipkart Group raised $3.6 billion at a valuation of $37.6 billion. Flipkart doesn’t plan to re-enter the mobile payments market, TechCrunch earlier reported.

PhonePe said it will deploy the new funds to make significant investments in infrastructure, including in the development of data centers and build more financial services. The company also plans to invest in new businesses, including Insurance, wealth management, and lending.

See also  Deakin University’s annual AI festival is on next week

“Sameer, Rahul and the PhonePe management team have pursued a clear mission to drive payments digitalization and significantly broaden access to financial tools for the people of India. They remain focused on driving adoption of inclusive products developed on the open API based ‘India stack,’” said Shantanu Rastogi, Managing Director and Head of India at General Atlantic, in a statement.

“This vision is aligned with General Atlantic’s longstanding commitment to backing high-growth businesses focused on inclusion and empowerment. We are excited to partner with the PhonePe team to help enable the next generation of digital innovation in India.”

(More to follow)

[ad_2]

Source link

James Thomas
James Thomashttps://businessadvise.org
Hello, I am James Thomas blogger and content creator who specializes in personal finance and investing at Business Advise. I have been writing for over 5 years and have built a large following of readers who value practical advice and actionable tips. I'm committed to helping people take control of their financial futures and achieve their goals.

Most Popular

asia788dewata88Asia788 Maxwinasia788asia788DEWATA88dewata88linetogeltogelupprotogeltogelonjon4dbri4dwinstar4dneon4dangsa4ddesa4dklik4dcici4dkuy4dbni4dkenangan4doyo4dmiya4dasia788asia788kita99dewata88dewata88dewata88dewata88dewata88dewata88dewata88dewata88dewata88dewata88dewata88dewata88dewata88dewata88key4ddragon4dpalu4dzara4dollo4dvisa4ddipo4dbingo4dambon4drasa4dwasiat4dneng4dpragmatic4dmenara4dgaruda4ddaya4dtata4daksara4dprada4dkingdom4droma4ddangdut4dtarget4darta4dvava4dyes4dtag4dloyal4dpola4dbajaj4dsisil4dpermen4dsenopati4dpapua4dpascol4dvenus4deropa4dkuat4dpedia4dks4dkekar4dlampung4dacong4dfantastic4dsega4doplet4dsuara4dpaitohk4dangkanet4dbetwin4datm4dlebah4dlima4dlipat4dibu4dtoto4dbarong4datas4diron4dbandit4dsemangat4dhut4dkoibet4dkebaya4daha4dmentos4dyolo4deak4dkelas4dtotal4dmamen4dvia4dhigh4djanda4ddewata88gacor7777asia788virgoBotuna4DBotuna4Dasia788asia788kita99kita99kita99asia788kita99Botuna4Dkita99kita99spaceman Virgobet88VIRGOBET88LOTRE4DASIA788ziptogelkita99virgobet88kita99kita99murah4dbukti4ddhx4dtante4dsbclive4dcalon4dmaya4dmedan4dstadium4dsekar4dtunas4dkumbang4dto4dtebar4dbocah4dneko4daxiata4dbibit4dkebaya 4doplet4dtoto 4dmaria togelbentengtogeltogel ccpt togelasiatogel88master togeldultogelindotogelzia togelspace togeldota togelkepri togeljeboltogeldagotogelpartaitogelpintu togeltoto88bola88kaisar888idcash88usaha188matahari88royal188garuda888mega288grandbet88prada188cocol88taktik88ovo88playbook88indolottery88tambang888lumbung88wayang88ugbet88oyo88gelora188ligaplay88sarang188probet88davo88mevius88gacor88nusantara88area188untung88v88totoorion88shio88subur88cipit88jago88soju88masterslot88dota88menangbet88pandora188megaslot88ajudan88sikat88situstogel88happybet188betwin188glowin88topslot88betslot88lineslot88olb88juragan88jingga88cukong88dewagame88visa288beton888ingatbola88liga788berlian888qq88asia988betdoremi88nona88bejo88spinhoki88cuan88kingbet188rajatoto88fixbet88suhu88mainslot88wslot888bintangbet88bintang88halo88planet88jpslot88gading88poka88arya88batara88bso88petir388autospin88ole388ciputra88tektok77kita99kita99kita99kita99kita99kita99kita99kita99kita99kita99kita99kita99tektok77virgobet88kita99virgobet88dewataslot88dewata888dewa888wukong138wukong138dewaslot88wukong138balislotkapalslotKAPALSLOTkapalslotkapalslottigerslot4dVirgobet88pohon4dpohon4dpohon4dpohon4dAsia788Asia788Asia788kikislotkikislotkikislotkikislotSLOTUP88slotup88slotup88slotup88asia788bigo4ddewata88bigo4dbigo4dbigo4dasia788asia788dewata88dewata88dewata88dewata88dewata88dewata88dewata88dewata88dewata88dewata88danaslot77game slot maxwinjudi online slot gacorbukit4dbukit4dbukit4dbukit4dbukit4dvirgobet88maniaslotmaniaslot