Phonepe Receives $100 Million In Funding At A $12 Billion Valuation.
One of India's most well-known fintech platforms, PhonePe, just announced a $100 deal worth by Ribbit Capital, Tiger Global, and TVS Capital Funds, valuing the company at an estimated $12 billion. The previous $350 million significant financing ended on January 19, 2023, and this additional investment comes shortly after.
After shifting its headquarters to India, PhonePe launched its most recent capital-raising effort with the objective of generating up to $1 billion. With this performance contract, it now secured $450 million within only six weeks from respected investors. In the near future, the company anticipates obtaining further investments from known high-net-worth individuals in India and other leading worldwide markets. PhonePe plans to use these funds to rapidly establish new firms, including Borrowing, Investment management, ONDC-based Shopping, and Accounts Aggregators, and to extend its Transactions and Security activities in India over the next few years.
Regarding fundraising, Sameer Nigam, the founder and CEO of PhonePe, stated, "I would want to appreciate Ribbit Capital, Tiger Global, and TVS Capital Funds for their faith in us. Existing and new major global investors who believe in our vision to build enormous technology platforms to provide technological and financial inclusion at scale to India are a great blessing.
"PhonePe shares the same core values as Ribbit. Increased wealth improves the quality of life. PhonePe's unrelenting pursuit of this idea in servicing Indian customers and businesses is a driving force behind its existence, "Micky Malka, the founder of Ribbit Capital, stated.
"PhonePe continues to set the standard for mobile payments in India, a market that Tiger Global Partner Scott Shleifer sees as "in its infancy but with significant potential for development," and he is happy to see the company's partnership with his company continue.
When we invested in PhonePe, we were reiterating our commitment to backing the best businesses and contributing to the economic digitization of India's next 450 million residents. We regard this as more of a potential in a population-scale market for New India, backed by an exceptional management team with a laser-like concentration on execution. PhonePe is the leading transaction platform in India, with a formidable technological advantage. Gopal Srinivasan, Chairman and Managing Director of TCF, stated that the company's robust growth in financial services spanning payments, insurance, and lending, together with untapped doors to two major possibilities by ONDC & Appstore, was one of the main reasons in TCF's investment thesis.
PhonePe, founded in December 2015 and now India's most popular payment app, presently has over 440 million registered users.
In addition, the organization has successfully digitized 3.5 crores (35 million) of inactive businesses located in Tier 2, Tier 3, Tier 4, and above, comprising 99.9% of the country's zip codes. According to the newly issued Brand Trust Report 2022 by Trust Research Advisory (TRA), PhonePe has been deemed the Most Recognized Brand in Mobile Banking.
