Fintech firm PhonePe has raised an additional $100 million (approximately Rs. 828 crore) in primary capital from new investors Ribbit Capital and TVS Capital Funds with the participation of existing investor Tiger Global, at a pre-money valuation of $12 billion (approximately Rs. 99,400 crore), the company said on Tuesday. This follows a $350 million (approximately Rs. 3,000 crore) primary fundraising by the company on January 19 from General Atlantic.
“PhonePe started its latest fundraising aiming to raise up to $1 billion (approximately Rs. 8,300 crore) in capital, following its move to India. With this second tranche, it has already raised $450 million (approximately Rs. 3,800 crore) raised within six weeks from leading investors. The company expects further investment from leading international and leading Indian investors in due course,” the company said in a statement.
PhonePe plans to use these funds to scale its payment and insurance business in India, as well as launch and aggressively scale new businesses in the coming years, such as lending, stock brokerage, ONDC-based shopping and account aggregators.
“I would like to thank Ribbit Capital, Tiger Global and TVS Capital Funds for the renewed confidence in us. We are privileged to have a large number of leading global investors, both existing and new, who believe in our mission to build massive technology platforms. to bring financial and digital inclusion to India at scale,” said PhonePe CEO and founder, Sameer Nigam.
Micky Malka, founder of Ribbit Capital, said PhonePe’s values are in sync with Ribbit’s.
“We both believe that better money makes life better. PhonePe’s relentless pursuit of this principle in serving consumers and businesses across India is a mission to live for,” said Malka.
Tiger Global’s partner Scott Shleifer said the company is excited to continue its partnership with PhonePe as they lead the digital payments industry in India, which is still in its early stages with significant growth potential ahead.
“PhonePe is the #1 transaction platform in India with an impressive pool of robust technical capabilities. The strong growth in financial services in payments, insurance and loans with open doors to two huge opportunities through ONDC and Appstore, were the main reasons for our investment thesis,” said Gopal Srinivasan, Chairman and Chief Executive Officer of TVS Capital Funds.