One of the top fintech platforms in India, PhonePe, said today that it has secured an additional USD 100 million in primary funding from Ribbit Capital, Tiger Global, and TVS Capital Funds at a USD 12 billion pre-money value. This new investment follows the most recent USD 350 million main financing, which ended on January 19, 2023.
PhonePe launched its most recent fundraising effort with the aim of raising up to USD 1 billion in capital after shifting its domicile to India. It has already acquired USD 450 million from reliable investors in just six weeks with this second tranche. The business expects to soon get further investments from well-known high-net-worth individuals in India and other leading worldwide marketplaces. PhonePe plans to aggressively develop additional businesses over the coming years, such as lending, stockbroking, ONDC-based shopping, and account aggregators, as well as grow its payments and insurance operations in India.
Sameer Nigam, CEO and Founder of PhonePe, commented on the fundraising, saying, "I would like to thank Ribbit Capital, Tiger Global, and TVS Capital Funds for reposing their faith in us. Our objective is to construct enormous technological platforms to deliver at-scale financial and digital inclusion to India, and we are fortunate to have a wonderful collection of prominent global investors, both existing and new.
"PhonePe adheres to the same principles that Ribbit does. We both agree that having more money improves life. It is a purpose to live for that PhonePe's unwavering pursuit of this ideal in helping customers and businesses across India, "the founder of Ribbit Capital, Micky Malka, said.
“We are excited to carry on our partnership with PhonePe as they lead the digital payments sector in India, a market we believe is still in the early stages with significant growth potential ahead," said Scott Shleifer, Partner, Tiger Global. "Our investment in PhonePe strengthens our belief in supporting top-tier founders while placing a wager on the financial digitalization of the next 450 million Indians," says the company. We see this more as a business opportunity for New India on a large scale, backed by an excellent management team with a laser-like concentration and execution. India's top transaction platform, PhonePe, boasts an outstanding moat of advanced technological capabilities. "Its robust growth in financial services spanning payments, insurance, and lending with unopened doors to two enormous prospects through ONDC and Appstore, were significant considerations in our investment thesis, said Gopal Srinivasan, Chairman and Managing Director, TCF.
PhonePe, which was established in December 2015 and has since grown to be India's top payments app, now has 44 crore (440+ Million) registered users. The organisation has also successfully digitalized 3.5 crore (35 million) offline businesses situated in Tier 2, 3, and higher, which corresponds to 99% of the country's pin codes. The Most Trusted Brand for Digital Payments is PhonePe, according to the Brand Trust Report 2022 from Trust Research Advisory (TRA).
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