PhonePe said it has raised another $100 million as part of the ongoing round, now standing at $450 million, as the Indian fintech giant bulks up its war chest following the recent separation from the parent firm Flipkart.
Ribbit Capital, Tiger Global and TVS Capital provided the new $100 million infusion. The ongoing round values the Bengaluru-headquartered PhonePe at a pre-money valuation of $12 billion. Walmart-backed PhonePe has said that it plans to raise up to $1 billion as part of the ongoing funding deliberations.
“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,” said said Scott Shleifer, a Partner at Tiger Global, in a statement.
At a $12 billion valuation, PhonePe is India’s most valuable fintech startup. The startup competes with Google Pay and Paytm. Paytm, which expects to reach $1 billion revenue by March this year, is currently valued at $4.5 billion.
PhonePe, to be sure, is the clear leader in the mobile payments market on UPI, a network built by a coalition of retail banks in India. UPI has become the most popular way Indians transact online, and processes more than 8 billion transactions a month. Seven-year-old PhonePe commands about 50% of all these transactions.
More to follow.