PhonePe, a payments app available in India, has raised $100m in primary capital, giving it a pre-money valuation of $12b.
The funds will be used to scale its payments and insurance businesses, and launch lending, stockbroking and account aggregation offerings over the next five years.
The investment came from Ribbit Capital, Tiger Global and TVS Capital Funds (TCF).
The latest round follows the $350m primary fundraise, led by General Atlantic, that closed on 19 January 2023, meaning PhonePe has raised almost half of its $1b capital goal.
Founded in 2015, PhonePe’s payments app is used by merchants and consumers. The app has over 440m—one out of every four Indians—registered users.
PhonePe expanded its services in 2017, by offering investing options, and since then has introduced mutual funds and insurance products.
Sameer Nigam, chief executive officer and founder of PhonePe, commented: ‘’We are privileged to have a great set of leading global investors, both existing and new, who believe in our mission of building massive technology platforms to bring at-scale financial and digital inclusion in India.’’
Scott Shleifer, partner at Tiger Global, said: “We are excited to continue our partnership with PhonePe as they lead the digital payments sector in India, a market we believe is still in the early stages with significant growth potential ahead.”
Gopal Srinivasan, chairman and managing director of TCF, added: “PhonePe is the number one transaction platform in India with an impressive moat of robust tech capabilities.
“Its strong growth in financial services across payments, insurance and lending with unopened doors to two massive opportunities through ONDC (open network for digital commerce) and Appstore, were key reasons in our investment thesis.”
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