Financial and payment services unicorn The Walmart-backed startup PhonePe has raised $350 million in a fresh round of funding from General Atlantic at a valuation of over $12 billion, making it the most valuable fintech in India. In a statement on January 19, the firm stated that it would be raising as much as $1 billion in the current round in instalments.
First information regarding PhonePe looking to raise money from General Atlantic at a $12 billion valuation surfaced in October.
The fundraising effort by PhonePe comes after the company announced its spin-off from e-commerce startup Flipkart in December. Additionally, the Flipkart spin-off completes PhonePe’s 2022 transformation to a fully Indian-domiciled business.
PhonePe has now joined the ranks of startups like Flipkart, which Walmart acquired, Paytm, which went public last year, Byju’s, and Swiggy as a decacorn, or startup valued at more than $10 billion. Razorpay, a digital payments and neobanking unicorn that was most recently valued at over $7.5 billion, has also been exceeded in terms of valuation by PhonePe.
The money would be used by PhonePe to finance infrastructure projects, including the construction of data centres, the business stated in a statement on January 19. The organisation also intends to make investments in brand-new industries like financing, insurance, and wealth management. According to the company, PhonePe will also concentrate on UPI light and credit on UPI.