Fintech platform PhonePe has raked in additional $100 million funding from a global private equity firm General Atlantic as a part of its ongoing round. This came after a month of raising the $100 million round.
With this funding tranche, the total investment from General Atlantic and its co-investors has reached $550 million since January this year. PhonePe has now raised a total of $850 million of primary capital in the current round which is expected to close at $1 billion.
Like previous tranches, the fresh funds have been raised at a pre-money valuation of $12 billion.
PhonePe is targeting to turn its core business profitable in 2023 and is betting big on lending, cross-sell opportunities, gateway business, and now e-commerce. With more than 450 million registered users, the company claims to have digitized 35 million offline merchants spread across tier II,III IV and beyond.
The firm recently said that it’s the leader in Bharat Bill Pay System (BBPS), processing over 45% of the transactions on the BBPS platform. The company also diversified into mutual funds and insurance products.
In December 2022, PhonePe completed its full separation from the e-commerce marketplace Flipkart and became a fully India domiciled company. On the lines of PhonePe, a clutch of more fintech firms such as Razorpay and Groww are in the process of shifting their domicile to India.
During FY22, PhonePe recorded 2.4X growth in scale to Rs 1,646 crore from Rs 690 crore in FY21. As per Fintrackr’s analysis, losses of the fintech firm crossed Rs 2,000 crore mark during FY22. Moreover, PhonePe posted Rs 1,913 crore revenue in the first 9 months of 2022.
