Walmart Invests $200 Million in PhonePe, Expanding Insurance and Wealth Ventures in India
PhonePe, India's leading digital payments firm, has secured a $200 million investment from its majority stakeholder, Walmart Inc., at a pre-money valuation of $12 billion.
This funding is part of PhonePe's ongoing fundraising efforts, with a target of up to $1 billion. In the past two months, the company has already raised $350 million from General Atlantic and $100 million from Ribbit Capital, Tiger Global, and TVS Capital Funds, maintaining the same valuation. Walmart will continue to be the majority investor, although the exact stake was not disclosed.
Despite a challenging funding environment, the Indian digital payments sector has remained resilient, driven by the increasing popularity of online payments and startups' aspirations to expand into the lucrative financial services industry. PhonePe intends to utilize these funds to develop and scale new ventures, including insurance, wealth management, and lending.
Last year, PhonePe separated from its parent company, Flipkart, and relocated its registered headquarters from Singapore to India. Walmart covered the substantial tax bill associated with the move, reportedly aiming to facilitate its entry into India's heavily regulated financial services market, particularly in the lending sector.