Atlantic: PhonePe bags another $100 million from General Atlantic


NEW DELHI: PhonePe has raised an additional $100 million in fresh funding from existing backer General Atlantic at a pre-money valuation of $12 billion. The investment is part of the Walmart-owned fintech group’s larger ongoing funding round that will see the company raise up to $1 billion from investors. With the latest capital injection, PhonePe has invested a total of US$850 million in funds in the current round.
General Atlantic and its co-investors alone have injected $550 million worth of capital into the Bengaluru-based company in the current round. The latest funding comes less than two months after the US-based growth equity investor and its affiliates wrote a $100 million check for PhonePe. “The investment reaffirms General Atlantic’s belief in the business and growth potential of PhonePe,” the company said in a statement Monday. Other investors like Tiger GlobalTVS Capital Funds and Ribbit Capital have also backed the startup’s ongoing funding round, which kicked off in January.
PhonePe, which ranks as India’s most valuable private fintech startup, previously said it will use large chunks of fresh funds to build new businesses such as insurance, ONDC (digital commerce open network) based shopping, wealth management and lending. The company has already established its ONDC presence on the network with the launch of its local trading app, Pincode.
In the quarterly earnings announcement that took place last week, Walmart’s top leadership said the PhonePe business continues to perform well and has already reached more than $1 trillion in annual total payment value (TPV).
The company’s aggressive fundraising comes at a time when the broader start-up sector is experiencing a slowdown in funding due to a global economic downturn. PhonePe moved its headquarters from Singapore to India last year and announced its split from Flipkart.

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