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PhonePe Raises $200 Million From Walmart At Valuation Of $12 Billion

This is the third installment in a $1 billion fundraising effort by the payments app.

<div class="paragraphs"><p>A screenshot of PhonePe app from Google Play store. (BQ Prime)</p></div>
A screenshot of PhonePe app from Google Play store. (BQ Prime)

PhonePe Pvt. has raised $200 million, or around Rs 1,650 crore, in additional funding from its current majority investor, Walmart, at a valuation of $12 billion, or Rs 99,000 crore.

This is the third installment of a fundraising effort by the payments app to raise $1 billion. It had earlier raised $100 million from Ribbit Capital, Tiger Global Management LLC, and TVS Capital Funds and about $350 million in a round led by General Atlantic Service Co. on Jan. 19.

The company said it expects further investments, which will be announced in due course.

PhonePe plans to deploy these funds to build and scale new businesses like insurance, wealth management, lending, stockbroking, ONDC-based shopping, and account aggregators, the company said.

The funds raised will also be deployed towards its efforts on UPI lite and credit on UPI.

This comes after PhonePe announced that it had changed its domicile to India and fully separated from Flipkart—moves that are synonymous with a company looking to list in India.

After the 2023 fundraise is complete, the IPO will take place in about 18 to 24 months after the completion of the 2023 fundraise, according to a December report by Bloomberg.