(CTN News) – In a fundraising round headed by private equity firm General Atlantic, the Walmart-backed Indian digital payments platform PhonePe received $350 million, valuing the business at $12 billion.
The additional funds will be used by PhonePe to expand its infrastructure expenditures, including the construction of data centers, and to support the large-scale expansion of financial services in the nation.
In addition, PhonePe said that it intended to engage in new industries, including finance, insurance, and wealth management.
Walmart-owned Flipkart and PhonePe today revealed the complete ownership split of PhonePe last month.
Both firms can independently develop their businesses, set their development trajectories, and use this move to maximize enterprise value for their respective shareholders.
The Flipkart Group purchased the PhonePe Group in 2016.
More than 400 million people are reportedly enrolled with PhonePe.
“I want to express my gratitude to General Atlantic and all of our supporters, both old and new.
The Indian digital ecosystem has become a worldwide model because of this effective public-private partnership, and PhonePe is happy to play a leading role in the nation’s digitalization initiatives.
Our most recent round of fundraising will enable us to further advance the Government of India’s mission of digital financial inclusion for everyone since we are an Indian business developed by Indians, “said Sameer Nigam, CEO and Founder of PhonePe.
In addition to supporting the next wave of development for UPI payments in India, “We look forward to delivering the next phase of our growth by investing in new business verticals like Insurance, Wealth Management, and Lending.”
Throughout its existence, General Atlantic, a worldwide private equity company, has provided financing and strategic assistance to over 445 growing firms. General Atlantic is now managing assets of over $73 billion.
General Atlantic’s managing director and head of India, Shantanu Rastogi, commented on the agreement: “Sameer, Rahul, and the PhonePe management team have followed a clear purpose to push payments digitization and dramatically increase access to financial instruments for the people of India.
They are still committed to promoting the usage of inclusive goods built on the “India stack,” an open API platform. This strategy is consistent with General Atlantic’s long-standing dedication to supporting high-growth companies with a commitment to inclusiveness and empowerment.”
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