PhonePe secures $100 million more in funding, valued at $12 billion

• ByStartup Story Team     |    February 14, 2023

PhonePe, a prominent fintech platform in India, announced that it has secured an additional $100 million in primary funding from Ribbit Capital, Tiger Global, and TVS Capital Funds at a pre-money valuation of $12 billion. This new investment follows the recent completion of a $350 million primary fundraise on January 19, 2023.

PhonePe, which recently shifted its base to India, launched a fundraising drive aimed at raising up to $1 billion in capital. In just six weeks, the company has secured $450 million in funds from reputable investors. PhonePe expects to receive additional investments from high net worth investors in India and other top international markets in the near future. The company plans to use the capital to aggressively build new ventures, including Lending, Stockbroking, ONDC-based Shopping, and Account Aggregators, and to expand its Payment and Insurance operations in India over the next few years.

Sameer Nigam, the CEO and Founder of PhonePe, expressed his gratitude to Ribbit Capital, Tiger Global, and TVS Capital Funds for their support in the recent fundraise. Nigam acknowledged the trust of both existing and new leading global investors in PhonePe’s mission of creating massive technology platforms to promote financial and digital inclusion in India at scale.

Micky Malka, the Founder of Ribbit Capital, commented on the shared values between PhonePe and Ribbit, which both believe that better money improves people’s lives. Malka praised PhonePe’s unwavering dedication to serving consumers and businesses throughout India, calling it a mission worth pursuing.

Scott Shleifer, Partner at Tiger Global, expressed excitement about continuing the partnership with PhonePe as the company leads the digital payments sector in India. Shleifer believes that the Indian market is still in its early stages and has significant growth potential in the future.

Gopal Srinivasan, the Chairman and Managing Director of TCF, highlighted the investment in PhonePe as a testament to their confidence in supporting exceptional founders while embracing the digitization of financial services for the next 450 million Indians. Srinivasan considers PhonePe as an opportunity in a population scale business for New India, with an excellent management team that prioritizes execution. PhonePe is India’s top transaction platform, thanks to its robust tech capabilities, and has experienced significant growth in financial services such as payments, insurance, and lending. Srinivasan cites the untapped potential of ONDC and Appstore as two enormous opportunities that factored into TCF’s investment thesis.

PhonePe, founded in December 2015, has become India’s top payments app, with over 440 million registered users. Furthermore, the company has successfully digitized 35 million offline businesses in Tier 2, 3, 4, and beyond, covering 99% of the country’s pin codes. PhonePe has been named the Most Trusted Brand for Digital Payments in the Brand Trust Report 2022 published by Trust Research Advisory (TRA).

Follow Startup Story