Digital payments company PhonePe has raised Rs 743.5 crore from its parent firm Singapore-based PhonePe Pvt Ltd. The Walmart-acquired group, formerly known as Flipkart Payments, had committed around USD 500 million to PhonePe in 2017 and the latest infusion is likely to be the final tranche of the pledged amount. PhonePe has been getting funds in turns through the last year.
PhonePe will use the fresh capital to aggressively promote the brand during the Indian Premier League. The company had roped in Aamir Khan as brand ambassador and has set aside Rs 500 crore as ad spend. PhonePe is also one of the broadcasting sponsors for the world’s flashiest domestic cricket league.
“Combination of cricket and a credible celebrity like Khan is the ideal combination to reach out to the mass of mass of the country and convince them. Products like UPI and PhonePe in that ecosystem is well established and we are seeing large volume of transactions. Now it's important for us to go out and educate the next 400-500 million users and get the tier 2 and tier 3 new-to-internet users to transact digitally,” Sameer Nigam, chief executive officer, PhonePe told Economic Times.
PhonePe provides an online payment system based on Unified Payments Interface in partnership with the Yes Bank. Paytm and Google Pay are the major competitors of the company. PhonePe has 50 million monthly active users
Walmart bought the parent company of PhonePe, Flipkart, for USD 16 billion in May 2018. Industry sources said the payments company has been trying to raise fresh funds independently now, Economic Times reported.
PhonePe has processed more than 225 million UPI transactions in February and scale up twice every three months, the company claimed.
Media reports suggest PhonePe is aiming for a valuation of USD 10 billion in the next funding rounds. KKR & Co, General Atlantic, Tiger Global, and Tencent could participate in the round.
Until now, PhonePe has raised over Rs 1,500 crore.