Fintech UPI PhonePe raises $350 mn fund from General Atlantic
Company plans to enter insurance, wealth management and lending businesses soon
Hyderabad: India’s well-known financial transaction platform, PhonePe, today announced that it has raised $350 million in funding from General Atlantic, a leading global growth equity firm, at a pre-money valuation of $12 billion.
The General Atlantic investment marked the first tranche of an upto $1 billion total fundraise that PhonePe has commenced in January, 2023.
Other new marque global and Indian investors have already been signed up for the second tranche, which is expected to close next month, the company said in a media communique.
The fundraise follows PhonePe’s recently announced change of domicile to India and full separation from Flipkart.
PhonePe plans to deploy the new funds to make significant investments in infrastructure, including the development of data centers and help build financial services offerings at scale in the country.
The company also plans to invest in new businesses, including Insurance, Wealth Management, and Lending.
By building products and offerings tailored for the Indian market, PhonePe today has over 400 million registered users, meaning that more than one in four Indians are on PhonePe.
The company has also successfully digitized over 35 million offline merchants spread across Tier 2, 3, and 4 cities and beyond, covering 99 percent of pin codes in the country.
“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 CEO at PhonePe.
“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, Sameer added. (UNI)