PhonePe raises $200 mn from Walmart at $12 bn valuation

Fintech major PhonePe has raised an additional $200 million in primary capital from Flipkart parent Walmart at a pre-money valuation of $12 billion. The latest funding comes as a part of PhonePe's ongoing fundraising of up to $1 billion in the capital, following its domicile shift to India last year.

With this tranche, the company has raised $650 million from several global investors. PhonePe has said it expects more investments in the near future. The latest funding comes days after the Walmart-owned startup raised $100 million in primary capital from Ribbit Capital, Tiger Global and TVS Capital Funds, at a pre-money valuation of $12 billion, in February.

PhonePe plans to deploy these funds to build and scale new businesses like insurance, wealth management, lending, stockbroking, ONDC-based shopping and account aggregators. The fundraising will also help PhonePe "turbo-charge" the next wave of growth for UPI payments in India, including UPI lite and credit on UPI.

"We would like to thank Walmart, our majority investor, for their continued support of our long-term aspirations. We are excited about the next phase of our growth as we build new offerings for Indian consumers and merchants, along with enabling financial inclusion across the nation,’’ says Sameer Nigam, CEO and founder of PhonePe.

As per Walmart International president and CEO Judith McKenna, PhonePe continues to expand its offerings and provide access to financial services for Indians at scale. "India is one of the world’s most digital, dynamic and fastest growing economies, and we are pleased to have the opportunity to continue to support PhonePe.”

This is the third major funding that PhonePe has received this year alone. In January 2023, General Atlantic infused $350 million into the company.

The Walmart-owned fintech startup had announced its separation from e-commerce firm Flipkart in December 2022. As part of the deal, existing Flipkart Singapore and PhonePe Singapore shareholders, led by Walmart, purchased shares directly in PhonePe India. Walmart, however, remains the majority shareholder in both business entities.

Meanwhile, PhonePe has become the first fintech app to launch support for 'UPI international' payments. The current launch supports all international merchant outlets in the U.A.E., Singapore, Nepal and Bhutan that have a local QR code. Users can now make payments in foreign currency directly from their Indian bank, just like they do with international debit cards.

PhonePe claims it has over 400 million registered users, with more than one in four Indians now using the app. The digital payments giant controls over 40% market share of the UPI network. It commands 40% of the market share of the UPI network and claims to have over 400 million registered users, more than one in four Indians are now using the app.