In unnamed funding spherical, 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 companies agency stated on 3 December 2020. The agency stated it has secured $700 million in a brand new financing spherical. This spherical, the title of which was not disclosed, was led by Walmart, with participation from some current traders. The brand new spherical gave PhonePe, which was based by three former Flipkart workers, a post-money valuation of $5.5 billion.
Talking on the event, Sameer Nigam, Founder and CEO, PhonePe, stated, “Flipkart and PhonePe are already among the many extra distinguished Indian digital platforms with over 250M customers every. This partial spin-off offers PhonePe entry to devoted long-term capital to pursue our imaginative and prescient of offering monetary inclusion to a billion Indians.‘’
The partial spin-off will cut back Flipkart’s stake in PhonePe from one hundred pc to 87 p.c. PhonePe, which suggests “on the cellphone” in Hindi, at the moment leads the cell funds market in India. In October, it surpassed Google Pay to turn into the highest UPI (Unified Funds Interface) funds app.
UPI is a four-year-old funds infrastructure constructed by India’s largest banks. It’s the preferred means 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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