Digital payments business of Walmart in India PhonePe received $82.5 million (Rs 585.66 crore) from its Singapore-based parent PhonePe Private Ltd, documents filed with Registrar of Companies (RoC) revealed.
The fund infusion comes at a time when competition in the fintech space is getting stiffer.
According to the filings, the company will allot 1,381,278 equity shares of Rs 10 each at a premium of Rs 4,230 each to the parent company.
While this is PhonePe's third round of fund infusion from the Singapore-based parent entity, the total funds infused in this fiscal has reached about Rs 1,700 crore.
This round also comes a month after PhonePe disclosed in its MCA filing that it incurred a loss of Rs 1,907 crore in FY19 while its revenue stood at Rs 245.8 crore during the same period.
In FY18, the digital payments company had reported a loss of Rs 791 crore. The higher losses incurred in FY19 can be primarily attributed to higher expenses as PhonePe reported to have spent Rs 2,153.2 crore, compared to Rs 840.1 crore in FY18.
A few days ago, competitor Paytm closed a round worth $1 billion of funding.
Recently speaking to YourStory, Founder and CEO of PhonePe Sameer Nigam accepted that competition is a challenge for them but said that they are here to compete and fight back, indicating that there will be aggressive cash burn.
PhonePe is also reportedly in talks with investors, including Tencent and Tiger Global to raise about $1 billion in external funding.
In September, Morgan Stanley analysts pegged PhonePe’s current valuation at $7 billion, based on the company’s market share and the state of the digital payments industry.
The current estimated valuation is a significant increase from the $1.5 billion valuation ascribed to it at the time of Walmart’s acquisition of its parent company Flipkart.
(Edited by Saheli Sen Gupta)