[Funding alert] PhonePe receives capital infusion of Rs 427Cr from Singapore parent
Flipkart-owned digital payments company PhonePe has raised about Rs 427.25 crore from its parent firm in another round of funding, according to RoC filings accessed by YourStory.
PhonePe Pvt Ltd, Singapore (formerly Flipkart Payments Pvt Ltd) was allotted 10,07,670 shares and the total amount paid was Rs 427,25,20,800, the filings showed.
The resolution was passed on February 12.
In July last year, PhonePe had received fund infusion of about Rs 698 crore from its parent firm, while another Rs 585.66 crore was pumped into the company in December.
Sameer Nigam, Co-founder and CEO of PhoenPe
The latest fund infusion is expected to help PhonePe to compete against the likes of Paytm, Google Pay, Amazon Pay, and others in the burgeoning payments segment in India.
As of December 2019, PhonePe had close to 185 million unique users, of which more than 20 percent of users are from Tier-II cities and more than 50 percent are from Tier-III cities and beyond. Further, the payments brand is also aiming to take its total number of users to 350 million by the year end and reach the 500-million mark by 2022.
In FY19, PhonePe’s losses grew by 2X to Rs 1,907 crore, while its revenue grew 5X between FY18 and FY19 to Rs 245.8 crore.
PhonePe platform, which registers close to 600 million transactions every month, plans to scale three times by 2020 end.
In February, the Bengaluru-based firm also set aside Rs 800 crore for brand marketing campaigns in 2020. This marks PhonePe’s largest-ever investment into marketing efforts to date.
In December last year, PhonePe said that it had crossed five billion transactions on its app. The company achieved this milestone owing to the reach and adoption of the platform across the country.
There have also been reports that Flipkart is looking at hiving off PhonePe into a separate entity, a move that would help the payments company raise funds independently.