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PhonePe concludes $700 mn fundraise round; Tencent, Tiger Global new stakeholders

PhonePe concludes $700 mn fundraise round; Tencent, Tiger Global new stakeholders

Walmart led fresh tranche with $281.5 million, whereas Tencent pumped in $50 million, and Tiger Global put in $16.5 million, PhonePe's regulatory filings in Singapore reveal

Following the fresh investment tranche, PhonePe has pocketed over $1.6 billion in total funding Following the fresh investment tranche, PhonePe has pocketed over $1.6 billion in total funding

Online payments app PhonePe has raised $350 million from new and existing investors as part of the $700 million round it announced in December last year. 

This marks the first fundraise for the Bengaluru-based firm in 2021. Walmart led fresh tranche with $281.5 million, whereas Tencent pumped in $50 million, and Tiger Global put in $16.5 million, PhonePe's regulatory filings in Singapore reveal, Entrackr reported.

Also Read: Paytm, PhonePe, Google Pay, other mobile wallets to be interoperable from April 2022

Following the fresh investment tranche, PhonePe has pocketed over $1.6 billion in total funding.
Tencent and Tiger Global are new investors in the digital payments major. 

The two companies, along with Google, Facebook, General Atlantic, and Google were in talks to back PhonePe at a valuation of $10 billion in early 2019. However, the discussions at the said valuation didn't move forward. 

According to Fintrackr's estimates, PhonePe has been valued at up to $5.7 billion in the new tranche. With the latest round, the payments firm has raised $700 million from Walmart, Tencent and Tiger Global across two tranches over the past eight months. 

PhonePe had raised $350 million from the three investors in an equivalent ratio in December 2020.

Also Read: PhonePe's acquisition of Indus OS in legal hurdle with investors Affle, Ventureast

Following this, Walmart now owns 10.30%, while Tencent holds a 1.80% stake in the company. Meanwhile, Flipkart is the largest stakeholder in PhonePe with 87.30%.

The digital payments major's valuation at up to $5.7 billion makes it the second-largest valued fintech company following Paytm whose valuation stood at $16 billion during its last private fundraise.

Currently, PhonePe commands a 45% market share in the UPI ecosystem in the country, far ahead of Google Pay which has around 34% share.