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General Atlantic invests more cash in PhonePe after $350M funding round

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PhonePe has received an additional $100 million investment from General Atlantic. The Indian fintech startup now wants to secure an additional $150 million in its ongoing financing round.

PhonePe, an Indian fintech startup, has received an additional $100 million investment from General Atlantic. This comes just four months after the investment firm led a $350 million funding round for the company. Despite the current global economic slowdown, PhonePe has managed to raise a total of $850 million in its ongoing financing round.

In a statement released on Monday, PhonePe, which is backed by Walmart, revealed details of its latest investment. In a recent development, the Bengaluru-based startup has been valued at $12 billion in the ongoing round. In the current funding round, PhonePe is reportedly seeking to secure an additional $150 million. Last month, PhonePe received an additional $100 million investment from General Atlantic.

India’s most valuable fintech startup is PhonePe, which has been valued at $12 billion. Competing against giants like Google Pay and Paytm, the latter of which boasts a valuation of almost $5 billion, is no easy feat.

Last year, PhonePe successfully completed a complete separation from the e-commerce giant Flipkart. The company has since emerged as the dominant player in transactions on UPI, which is a network that was established by a coalition of retail banks in India. With over 8 billion transactions processed each month, UPI has emerged as the preferred mode of online transaction for Indians. According to recent reports, Google’s GPay and PhonePe are currently responsible for processing over 80% of all UPI transactions.

The seven-year-old digital payments platform, PhonePe, has emerged as a dominant player in the market, accounting for nearly 50% of all transactions by value. Despite its already impressive market share, PhonePe shows no signs of slowing down. Earlier this year, the company made a statement regarding its ability to handle transactions worth $1 trillion on an annual basis.

Earlier this year, Walmart, the majority shareholder of e-commerce giant Flipkart, stated that the separation of Flipkart and PhonePe was similar to the separation of eBay and PayPal. The company believes that both entities operating independently can focus on their respective initiatives.

According to sources familiar with the matter, General Atlantic, a growth equity investor based in New York, intends to invest a minimum of $2 billion to $3 billion in India over the next five to seven years. The company has previously supported several Indian firms, including Jio, BillDesk, Byju’s, Amagi, NoBroker, and Unacademy, over the last ten years.

PhonePe is currently expanding its product offerings and has recently received a new investment. Earlier this year, a startup launched a hyperlocal commerce app named Pincode. The app is powered by the Open Network for Digital Commerce (ONDC), which is an Indian government initiative aimed at democratizing the e-commerce industry by providing a zero-commission platform.

PhonePe has announced that it will be dedicating a considerable amount of resources towards the development of Pincode. The company has also expressed its commitment to empowering shopkeepers across India, regardless of their location, over the course of the next few years.

Fintech giant, PhonePe, has set its sights on leveraging its massive registered user base of 450 million by diversifying into a range of financial services. These include wealth management, lending, stockbroking, ONDC-based shopping, and account aggregation.

The growth of PhonePe faced a possible hurdle in the form of the National Payments Corporation of India (NPCI). This organization is responsible for supervising the UPI network and aimed to enforce limitations on market share for all participating players. The National Payments Corporation of India (NPCI) has granted PhonePe a two-year extension for compliance, thereby enabling the company to continue its rapid expansion until 2025.

The Reserve Bank of India, the central bank of the nation, has made a significant decision to discontinue a prominent project that was originally intended to rival the UPI platform. This move is being viewed as a positive development.

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