Fintech platform PhonePe today announced that it has raised another $100 million in primary capital from Ribbit Capital, Tiger Global and TVS Capital Funds at a pre-money valuation of $12 billion.
This new investment follows the recent $350 million primary fundraise that closed on January 19.
PhonePe started its latest fundraise with a target of raising up to $1 billion in capital, post its domicile shift to India. With this second tranche, it has already raised $450 million within six weeks from leading investors.
The company expects further investments from leading global as well as prominent high net worth Indian investors in due course.
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The fundraiser follows PhonePe’s recently announced change of domicile to India and full separation from Flipkart.
Last month, Flipkart and PhonePe announced a full ownership separation of PhonePe, which involves hiving of the digital payments firm into a separate entity. Both entities will, however, operate under the US-based Walmart.
PhonePe plans to deploy these funds to scale up its payments and insurance businesses in India as well as to launch and aggressively scale new businesses like lending, stockbroking, ONDC-based shopping and account aggregators over the next few years.
“I would like to thank Ribbit Capital, Tiger Global and TVS Capital Funds for reposing their faith in us. We are privileged to have a great set of leading global investors, both existing and new, who believe in our mission of building massive technology platforms to bring at scale financial and digital inclusion in India,’’ said Sameer Nigam, CEO and founder of PhonePe, in a statement.
“We are excited to continue our partnership with PhonePe as they lead the digital payments sector in India, a market we believe is still in the early stages with significant growth potential ahead,” said Scott Shleifer, Partner, Tiger Global
By building products and offerings tailored to the Indian market, PhonePe claims to have over 400 million registered users, meaning that more than one in four Indians are on PhonePe.
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The company also has over 35 million offline merchants spread across tier 2, 3, and 4 cities and beyond. The fintech startup had forayed into financial services in 2017, providing users with safe and convenient investing options on its platform.
Since then, the company has introduced several mutual funds and insurance products that offer every Indian an equal opportunity to unlock the flow of money and access to services.