If reports are anything to go by, Digital payment company PhonePe is hinting to raise fresh funds worth $ 10 Billion from private equity firms KKR & Co, General Atlantic LLC, Tiger Global, and Tencent. The investment will add to the existing resources of the firm.
The fresh funding plan has been in works for months, as last reports surfaced in October 2018 that Flipkart and PhonePe are looking to onboard strategic investors. The funds will help PhonePe boost its digital payments reach by extracting a high valuation and form a consortium of investors who can offer big doses of fresh funds it needs to win the payments war over the next few years.
PhonePe is one of the potential reasons behind Walmart reason investing in the Flipkart group last year. Interestingly, with Wallmart-Flipkart shuffle has brought innovative changes to Flipkart's, fashion subsidiaries Myntra and Jabong, but no such big movement has come to the PhonePe team.
Flipkart had bought PhonePe back in 2015. The company claims to have crossed a billion transactions in December 2018. It offers peer-to-peer transfer, recharges, bill payments, gold purchases, among others. The total investment by Flipkart in PhonePe is $184.1.
PhonePe has also expanded its offerings to wealth management with a focus on millennials and will involve partnerships with existing players rather than doing a lot of the work in-house as a separate entity.
The digital payments market in India has been booming with companies including Paytm, PhonePe and Google Pay adapting strategies to increase their user base. The competition is going to turn stiff with the future of digital payment appearing as bright as a diamond. Thus the competitioes must fuel up their guns and PhonePe seems to do the same.
For more interesting stories, Download the Lopscoop application from Google play store and earn extra money by sharing it on social media.