Tiger Global leads fresh $100m in PhonePe

Indian fintech company PhonePe has raised $100m as part of an ongoing funding round, taking the total amount raised to $450m. Despite recent market setbacks, Ribbit Capital, Tiger Global and TVS Capital invested in the Bengaluru-based company, which is now valued at $12bn.

PhonePe, which split from parent firm Flipkart, had planned to raise up to $1bn in total during this funding round. The company, which competes with Google Pay and Paytm, currently commands about 50% of the mobile payments market in India through the UPI network.

PhonePe is using its 300 million-strong user base to expand its offerings, including insurance, and is looking to grow into a bank. Its financials have not been disclosed, but it generated revenues of $234.3m during the first nine months of 2022 and expects to generate $325m and $504m in 2022 and 2023, respectively.

The company does not expect to turn an earnings before interest, taxes, depreciation, and amortization profit until 2025.