Flipkart’s digital payment platform PhonePe has secured fresh funding of Rs 254 crore from its Singapore-based group entity Flipkart Payment, recent filings with the registrar of companies (RoC) showed.
The fresh infusion of funding comes about two months after Flipkart secured $2.5 billion from Japanese internet major Softbank. The fresh funding will likely help the digital payment platform ward off competition in the fintech sector that is getting increasingly crowded with the entry of new players. Just a few days ago, Google launched its UPI-based payment platform, Tez, and garnered more than 4 lakh of active users in less than 24 hours of its launch.
The payments space in India has become crowded after demonetisation. The space saw the entry of not only large players such as Amazon, Flipkart, Uber and Ola, but also some acquisitions like Freecharge being bought by Axis and PayU buying Citrus Pay last year.
According to the filings, PhonePe raised the funds by allocating 1.76 million equity shares at a premium of Rs 1,435.29 per piece to its Singapore-based group entity.
PhonePe, formerly FX Mart, was acquired by Flipkart in 2016. It had last raised funds of Rs 83 crore from the same Singapore-based group entity in October 2016.
PhonePe in a blog post in August had claimed to have achieved $2.5 billion total payment volume (TPV) annual run rate. “The PhonePe mobile app has been downloaded by over 40 million Indians in the past 10 months,” the blog in August had stated.