In unnamed funding round, Flipkart backed PhonePe raises contemporary funds thereby taking its valuation to $5.5 billion.
PhonePe, owned by Walmart-backed Flipkart, is “partially” spinning off, the Bangalore-based monetary providers agency stated on 3 December 2020. The agency stated it has secured $700 million in a new financing round. This round, the title of which was not disclosed, was led by Walmart, with participation from some present traders. The new round gave PhonePe, which was based by three former Flipkart workers, a put up-cash valuation of $5.5 billion.
Speaking on the event, Sameer Nigam, Founder and CEO, PhonePe, stated, “Flipkart and PhonePe are already among the many extra outstanding Indian digital platforms with over 250M customers every. This partial spin-off offers PhonePe entry to devoted lengthy-time period capital to pursue our imaginative and prescient of offering monetary inclusion to a billion Indians.‘’
The partial spin-off will scale back Flipkart’s stake in PhonePe from 100 % to 87 %. PhonePe, which suggests “on the phone” in Hindi, at present leads the cell funds market in India. In October, it surpassed Google Pay to change into the highest UPI (Unified Payments Interface) funds app.
UPI is a 4-12 months-previous funds infrastructure constructed by India’s largest banks. It is the most well-liked manner folks transact cash digitally in India. PhonePe reported 835 million UPI transactions in October, forward of Google Pay, which processed about 820 million transactions in the identical month.
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