PhonePe Gets $100 Million in Additional Funding, Total $450 Million Raised in Six Weeks

Fintech firm PhonePe has raised another $100 million (about Rs. 828 crore) in primary capital from new investors Ribbit Capital and TVS Capital Funds with participation from existing investor Tiger Global, at a pre-money valuation of $12 billion (roughly Rs. 99,400 crore), the company said on Tuesday. This follows a $350 million (roughly Rs. 3,000 crore) primary fundraise by the company on January 19 from General Atlantic.

"PhonePe started its latest fundraise with a target of raising up to $1 billion (roughly Rs. 8,300 crore) in capital, post its domicile shift to India. With this second tranche, it has already raised $450 million (roughly Rs. 3,800 crore) within six weeks from leading investors. The company expects further investments from leading global, as well as prominent high net worth Indian investors in due course," it said in a statement.

PhonePe plans to deploy these funds to scale up its payments and insurance businesses in India, as well as to launch and aggressively scale new businesses like lending, stockbroking, ONDC-based shopping and account aggregators over the next few years.

"I would like to thank Ribbit Capital, Tiger Global and TVS Capital Funds for reposing their faith in us. 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," PhonePe CEO and Founder Sameer Nigam said.

Ribbit Capital Founder Micky Malka said PhonePe's values are in sync with Ribbit.

"We both believe that better money makes life better. PhonePe's relentless pursuit of this principle in serving consumers and businesses all across India is a mission to live for," Malka said.

Tiger Global's Partner Scott Shleifer said the firm is excited to continue its partnership with PhonePe as they lead the digital payments sector in India which is still in the early stages with significant growth potential ahead.

"PhonePe is the number 1 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 and Appstore, were key reasons in our investment thesis," TVS Capital Funds Chairman and Managing Director Gopal Srinivasan said.