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PhonePe raises $200mn in additional funding
March 17, 2023
With this tranche, the company has raised $650 million from several global investors, including Ribbit Capital, Tiger Global, and TVS Capital Funds since January. The latest funding comes as a part of PhonePe’s ongoing fundraise of up to $1 billion in capital, following its domicile shift to India last year. The company expects further investments, which will be announced in due course.
Like previous tranches, PhonePe has raised the new money at a pre-money valuation of $12 billion.
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 in a press release. The capital will also help PhonePe turbo-charge the next wave of growth for UPI payments in India, including UPI lite and Credit on UPI.
With over 400 million registered users, PhonePe claims to hit an annualized TPV (Total payment value) run rate of $1 trillion (₹84 lakh crore approximately). It also leads the UPI space where it holds over 50% market share by value. Its competitors Google Pay and Paytm are far behind in terms of transaction volume and value.
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