PhonePe, a Flipkart-owned company, raises 742 crore from its parent company
- ByStartupStory | November 25, 2022
A decision to issue 3,71,753 shares at a price of Rs 19,958 per share was made, and Flipkart-owned PhonePe raised Rs 742 crore from its parent firm. Previously, in March 2022, at an issue price of Rs 8,901, the fintech company issued 2.5 million shares for $297 million.
A huge increase from Rs 640 crore in FY21 to Rs 1,690 crore in FY22 was recorded by the fintech industry. However, it also experienced an increase in its marketing and net staff costs. Employee costs were stated by the corporation as being Rs 725.03 crore in FY21; however, they increased to Rs 1638 crore in FY22. Similarly, marketing costs increased from Rs 535 crore to Rs 670 crore.
The company’s net losses increased as a result of the sharp rise in staff costs. PhonePe experienced a net loss of Rs 1,775.78 crore in this fiscal year as opposed to Rs 1,730.57 crore in the previous fiscal year.
In 2015, Sameer Nigam, Rahul Chari, and Burzin Engineer established PhonePe. It was purchased by the Indian e-commerce behemoth Flipkart in 2016. Tiger Global and Walmart, two of the current investors in Flipkart, contributed $700 million to the company’s $700 million fundraising round in 2020.
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