Digital payments major PhonePe said it has raised $350 million in funding from global private equity firm General Atlantic at a pre-money valuation of $12 billion, according to ETtech report.
The investment marks the first tranche of an up to $1 billion total fundraise that commenced in January 2023, the company said in a statement. It said other global and Indian investors are also participating in the round.
With the transaction, PhonePe has now become the most valued privately-held Indian fintech, surpassing the valuation of digital payments provider Razorpay, which was last valued at $7.5 billion, the report said.
“We look forward to delivering the next phase of our growth by investing in new business verticals like insurance, wealth management and lending, while also facilitating the next wave of growth for UPI (Unified Payments Interface) payments in India,” said Sameer Nigam, co-founder and chief executive officer, PhonePe.
“Sameer (Nigam), Rahul (Chari) and the PhonePe management team have pursued a clear mission to drive payments digitalisation and significantly broaden access to financial tools for the people of India. They remain focused on driving adoption of inclusive products developed on the open API-based ‘India stack’. This vision is aligned with General Atlantic’s long-standing commitment to backing high-growth businesses focused on inclusion and empowerment,” said Shantanu Rastogi, managing director and head of India at General Atlantic.
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