PhonePe plans to deploy these funds to build new businesses and expand.

Bengaluru:

Indian digital payments firm PhonePe today said it has raised $200 million from Walmart Inc at a pre-money valuation of $12 billion.

PhonePe, which is already India’s most valued payments firm and one of the country’s most valued startups, said the investment is part of its ongoing fundraising of up to $1 billion.

It has raised $350 million from private equity firm General Atlantic and $100 million from Ribbit Capital, Tiger Global and TVS Capital Funds in the last two months, at a valuation of $12 billion.

US retail giant Walmart, which acquired a majority stake in PhonePe in 2018, will continue as the majority investor, the Indian company said without disclosing its stake.

Despite the funding winter, the Indian digital payments space has been a bright spot owing to the popularity of online payments and the ambition of startups to branch out into the lucrative financial services sector.

PhonePe said it plans to deploy these funds to build and expand new businesses including insurance, wealth management and lending.

PhonePe was spun off from Indian e-commerce giant Flipkart late last year when it moved its registered headquarters from Singapore to India, a move that raised Walmart’s nearly $1 billion tax bill.

The transfer, according to some reports, was to ensure an easier entry into the country’s highly-regulated financial services industry, particularly lending.

(Reporting by Meenakshi Maidas in Bengaluru; Editing by Savio D’Souza)

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