Phone Pe gets Rs 698 crore fresh infusion from parent company

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Published: July 30, 2019 1:59:01 AM

PhonePe has received about $101.58 million (Rs 697.91 crore) in fresh fund infusion from its Singapore parent, PhonePe Pvt Ltd, (formerly known as Flipkart Payments), according to documents sourced from business signals platform paper.vc.

Analysts at paper.vc said there is little purpose for Walmart to push large dollops of capital into Flipkart India, given the new e-commerce regulations.

PhonePe has received about $101.58 million (Rs 697.91 crore) in fresh fund infusion from its Singapore parent, PhonePe Pvt Ltd, (formerly known as Flipkart Payments), according to documents sourced from business signals platform paper.vc.

Analysts at paper.vc said there is little purpose for Walmart to push large dollops of capital into Flipkart India, given the new e-commerce regulations. “Instead, you have this extraordinary bullishness with PhonePe, the current infusion being the third-largest infusion ever and the second one this calendar year,” founder Vivek Durai told FE.

PhonePe’s owner Flipkart was acquired by US-based Walmart in a $16-billion deal in August 2018. Earlier this year, PhonePe’s Singapore parent infused Rs 743.6 crore ($108.23 million) in the digital payments firm. In late 2018, it got over Rs 1,000 crore (about $180 million) in funding from the same entity.

Founded in 2015 by Sameer Nigam, Rahul Chari and Burzin Engineer, PhonePe was acquired by Flipkart in 2016. It is the first payments app to be built on United Payments Interface (UPI).

Walmart had struck a bullish note on PhonePe last month. “The Indian government is making sure that every Indian has a bank account and a cell phone and a biometric ID so they want to link those things together. So, I think the regulatory environment is pushing with us I think in this particular instance. And so we’re just very excited about the future of that (PhonePe) business,” Walmart International CFO and executive vice-president Richard Mayfield said at an event. He said PhonePe is aiming to build India’s largest transaction platform built on payments and then to use that platform to leverage “big profit pools in markets like financial services”.

PhonePe competes with the likes of Amazon Pay, Paytm and Google Pay in India.

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