PhonePe’s valuation has more than doubled to over $12 billion in a new funding round, as the Indian fintech giant is poised for life without parent company Flipkart. The Bengaluru-based startup says it has raised $350 million and plans to raise another $650 million as part of a round.
General Atlantic led the first tranche of the investment. The company has not assigned a name to the funding round. The startup said he has a pre-money valuation of $12 billion in the new round. TechCrunch reported last month that PhonePe is finalizing a massive funding round at his $12 billion pre-money valuation.
PhonePe, which was valued at $5.5 billion in late 2020, is now valued at a staggering $12 billion. PhonePe’s current annual revenue is less than $500 million. Publicly traded rival Paytm, which is expected to reach $1 billion in revenue in the fiscal year ending March 2023, currently has a market capitalization of $4.2 billion.
PhonePe is the clear leader in the mobile payments market for UPI, a network built by the Union of Indian Retail Banks. UPI has become the most popular way for Indians to transact online, with him processing over 7 billion transactions per month. Her 7-year-old PhonePe orchestrates about 40% of all those transactions.
A concern over PhonePe’s growth was that Indian regulators had been conducting market capitalization checks on each player, but the deadline for new guidelines was extended last month and won’t come into effect until 2025, leaving PhonePe for another two years. You will grow rapidly.
“We thank General Atlantic and all our existing and new investors for their trust in us. PhonePe is proud to lead India’s nationwide digitalization efforts, We believe that this strong public-private partnership has made India’s digital ecosystem a global role model.We are an Indian company founded by Indians and our latest funding is the result of the Indian government’s all- It will help us further accelerate our vision of digital financial inclusion for people,” said Sameer Nigam, Founder and CEO of PhonePe.
“We look forward to delivering the next phase of growth by investing in new business areas such as insurance, wealth management and lending, as well as facilitating the next wave of growth for UPI payments in India. I am also looking forward to it.”
follow more
