Decacorn fintech PhonePe is conducting ongoing fundraising of USD 1 billion, which has raised USD 750 million by far. The latest investment in this series comes from General Atlantic, who just contributed USD 100 million to the fundraising. Walmart Group is now very close to completing its set goal.
Notably, General Atlantic invested USD 350 million in PhonePe in January 2023. PhonePe’s latest statement confirms the second investment by General Atlantic. “PhonePe confirms a $100 million additional tranche of investment from General Atlantic, a leading global growth equity firm, and its co-investors as part of our ongoing fundraise. General Atlantic initially invested $350 million in PhonePe in January 2023,”
Other significant investors include TVS Capital Funds, Tiger Global and Ribbit Capital, who contributed USD 100 million in total. In comparison, Walmart alone bestowed USD 200 million in the fund infusion. PhonePe intends to utilise these funds in insurance and wealth management, stockbroking, lending, ONDC-based shopping and account aggregators. Moreover, PhonePe plans to prepare for the new revolution in UPI payments with this fundraising.
The company has a busy schedule, and ambitious plans post the investments. The potential USD 100 billion investment will allow PhonePe to charge into hyperlocal e-commerce through the functionality of the new platform Pincode. Fundraising is unique in many ways as it comes during an impending economic slowdown.
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The domestic and global market has turned bearish about new investments and growth now. The amount raised by startups in India dropped from CY21 to USD 24 billion in CY22 by 33%. This fundraising will allow PhonePe to launch ambitious projects despite the slowdown. Moreover, it will empower PhonePe to separate its ownership from its parent Flipkart fully.
