Key Points of PhonePe Funding from Walmart:
- PhonePe has raised $200 million in funding from Walmart at a pre-money valuation of $12 billion.
- PhonePe is one of India’s leading fintech platforms with over 400 million registered users.
- The company plans to use the funds to build and scale new businesses like insurance, wealth management, lending, stockbroking, ONDC-based shopping, and account aggregators.
- The capital will also help PhonePe accelerate the next wave of growth for UPI payments in India, including UPI lite and Credit on UPI.
- PhonePe has an annualized TPV run rate of $1 trillion and aims to expand its services and gain a larger market share.
- PhonePe reported a spike of 2.4X in revenue to Rs 1,646 crore for the fiscal year ending on March 31, 2022, compared to Rs 690 crore in FY21.
- PhonePe’s CEO expects the company to surpass its FY22 numbers in the fiscal year FY23, thanks to the additional funding and the expansion of its business operations.
Details of PhonePe Funding from Walmart:
PhonePe Raises $200M in Funding from Walmart, Plans to Expand Business Operations
PhonePe, one of India’s leading fintech platforms, announced today that it has raised $200 million in primary capital from Walmart at a pre-money valuation of $12 billion. This latest funding comes as part of PhonePe’s ongoing fundraise of up to $1 billion in capital, following its shift to India last year. The company has already raised $650 million from various global investors, including Ribbit Capital, Tiger Global, and TVS Capital Funds since January.
PhonePe, with over 400 million registered users, plans to use these funds to build and scale new businesses like insurance, wealth management, lending, stockbroking, ONDC-based shopping, and account aggregators. The capital will also help PhonePe accelerate the next wave of growth for UPI payments in India, including UPI lite and Credit on UPI.
The firm, which holds over 50% market share by value in the UPI space, leads its competitors Google Pay and Paytm in terms of transaction volume and value. With an annualized TPV run rate of $1 trillion, PhonePe is aiming to expand its services and gain a larger market share.
PhonePe reported a spike of 2.4X in revenue to Rs 1,646 crore for the fiscal year ending on March 31, 2022, compared to Rs 690 crore in FY21. However, the company’s losses only grew 16.5% to Rs 2,014 crore in the last fiscal year. According to the company’s valuation report accessed through a regulatory filing, PhonePe has recorded Rs 1,913 crore in revenue in the first nine months (January to September) of 2022, further improving its balance sheet.
PhonePe’s CEO said that the company is likely to surpass its FY22 numbers in the fiscal year FY23, thanks to the additional funding and the expansion of its business operations.
About PhonePe:
PhonePe is an Indian digital payments and financial technology company headquartered in Bengaluru, Karnataka, India. PhonePe was founded in December 2015, by Sameer Nigam, Rahul Chari and Burzin Engineer. The PhonePe app, based on the Unified Payments Interface, went live in August 2016.
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