PhonePe receives Rs 427 crore in fresh capital from Singapore parent

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Published: February 27, 2020 1:30:51 AM

In 2019, the entity infused a total of about $340 million in the digital payments firm in four tranches.

phonepe, amazonpayPhonePe that competes with Amazon Pay, Google Pay and Paytm saw its losses widen by 140% year-on-year to Rs 1,904.72 crore in the year to March 2019.

PhonePe has received $60 million (Rs 427.25 crore) in fresh capital from its Singapore parent, PhonePe Pvt Ltd – the first infusion this calendar year, according to the company’s RoC filings, sourced from business signals platform paper.vc.

In 2019, the entity infused a total of about $340 million in the digital payments firm in four tranches.

Walmart that claims to be impressed with the way PhonePe is “scaling” has pumped in a considerable chunk of money in Flipkart’s payments business since its acquisition of the e-commerce firm in 2018. Nikhil Kanekal, analyst at paper.vc, says the US-based retailer has infused nearly $700 million in PhonePe during 2018 and 2019.

“PhonePe’s ambition is to be India’s largest transaction platform anchored in payments,” said Judith McKenna, president and CEO at Walmart International. McKenna said PhonePe is currently generating about $180 billion in annualised total payments value (TPV). “This business is just three years old; and in that time it’s grown to almost 200,000 registered users. 20 million of them are using the app on a daily basis, and in total those users are making more than 500 million monthly transactions,” McKenna said at a recent investor community meeting.

In May 2018, Walmart announced purchase of a 77% controlling stake in Flipkart in a hefty $16-billion deal, valuing the company at around $21 billion. PhonePe, the first payments app to be built on united payments interface (UPI), was founded in 2015 by Sameer Nigam, Rahul Chari, Burzin Engineer and was acquired by Flipkart in 2016.

Recently, PhonePe has come under fire from rivals due to the launch of its new business – PhonePe ATM that facilitates cash withdrawal by customers from offline merchants through the UPI interface. “It’s a revolutionary solution. It’s got the potential to transform access to cash in India,” McKenna said.

PhonePe that competes with Amazon Pay, Google Pay and Paytm saw its losses widen by 140% year-on-year to Rs 1,904.72 crore in the year to March 2019. Total expenses of the firm shot up to Rs 2,153.22 crore in FY19 compared to expenses of Rs 840.06 crore in FY18. In January, Amazon Pay India received $188.58 million in funding from its US parent.

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