India’s one of the leading online payment system provider PhonePe has raised $66 million (about Rs 452 crore) from Flipkart Payments Ltd by allotting 21 lakh shares at a premium under a rights issue, reports Paper.vc.
According to the report, PhonePe board approved the fund-raising decision on July 9 and allotment was made on July 20 to ostensibly compete with well-funded rivals like Paytm. The 3-year-old city-based financial technology (fin-tech) firm is a wholly-owned subsidiary of India’s leading etailer Flipkart.
The latest round of funding is part of Flipkart’s decision in last October to invest $500 million in PhonePe overtime. The subsidiary has already raised $250 million with the inclusion of the latest funding.
Based on unified payments interface, PhonePe’s app enables its registered users to pay for utility bills, mobile and direct-to-home charges, sending and requesting money, credit card bills and insurance premium. The app is linked to the user bank account for seamless secured transactions through multiple payment modes like Bhim, debit and credit cards
In October last year, Flipkart had said it would invest $500 million to expand PhonePe, in addition to the $75 million infused by Flipkart in the mobile payments businesses since it acquired PhonePe in April 2016.
Last week, PhonePe claimed that it was the largest UPI-based payments player in the country, ahead of the likes of Paytm and Google’s Tez app, citing data from the National Payments Corp. of India.
In July, the company acquired point-of-sale (PoS) business of Zopper, a hyperlocal mobile marketplace for small and medium-sized businesses, as part of a broader strategy to ramp up its offline business. In November, PhonePe launched its own point-of-sale device for small merchants.