Walmart Invests US$200 Million in PhonePe

PhonePe, the Indian digital payments company, has raised an additional US$200 million from Walmart, bringing the total funds raised for this tranche to US$650 million. This investment has pushed PhonePe’s pre-money valuation to US$12 billion. The company has stated that it expects further investments in its ongoing fundraise of up to US$1 billion in capital, with announcements to follow in due course.

PhonePe plans to utilize the raised funds to scale up its payments and insurance businesses in India, while also launching and scaling new businesses such as lending, stockbroking, Open Network for Digital Commerce (ONDC)-based shopping, and account aggregators. The company recently made a domicile shift from Singapore to India and incurred taxes of approximately US$18.35 million for the move.

Sameer Nigam, CEO and Founder of PhonePe, expressed his gratitude towards Walmart, the majority investor, for their continued support of their long-term aspirations. He added that they are excited about the next phase of growth as they build new offerings for Indian consumers and merchants, enabling financial inclusion across the nation.

Judith McKenna, President and CEO for Walmart International, stated that Walmart is pleased to continue to support PhonePe as they expand their offerings and provide access to financial services for Indians at scale. She also expressed excitement about PhonePe’s future, given that India is one of the world’s most digital, dynamic, and fastest-growing economies.

The fresh funds raised by PhonePe from Walmart will enable the company to deepen its footprint in the rapidly growing Indian fintech market, with plans to launch a plethora of new products and services. With the backing of Walmart, PhonePe is well-positioned to leverage the growth potential in the Indian fintech industry and to deliver innovative financial solutions that address the needs of consumers and merchants across the country.

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