PhonePe, one of India’s largest fintech platforms, has on Tuesday announced it has raised another $100 million in primary capital from Ribbit Capital, Tiger Global and TVS Capital Funds, at a pre-money valuation of $12 billion.

This new investment follows the recent $350 million primary fundraise that closed on January 19th, 2023, PhonePe said in a statement.

PhonePe started its latest fundraise with a target of raising up to $1 billion in capital, post its domicile shift to India.

With this second tranche, it has already raised $450 million within six weeks from leading investors.

The company expects further investments from leading global, as well as prominent high net worth Indian investors in due course.

PhonePe plans to deploy these funds to scale up its Payments and Insurance businesses in India, as well as to launch and aggressively scale new businesses like lending, stockbroking, ONDC-based shopping and account aggregators over the next few years.

“I would like to thank Ribbit Capital, Tiger Global and TVS Capital Funds for reposing their faith in us,

“We are privileged to have a great set of leading global investors, both existing and new, who believe in our mission of building massive technology platforms to bring at-scale financial and digital inclusion in India,” said Sameer Nigam, Chief Executive Officer and Founder of PhonePe.

PhonePe was founded in December 2015, and has emerged as India’s largest payments app, enabling digital inclusion for consumers and merchants alike.

With 44 crore (440+ million) registered users, the company has also successfully digitized about 3.5 crore (~35 million) offline merchants spread across Tier 2,3,4 and beyond, covering 99 percent pin codes in the country.

PhonePe is also the leader in Bharat Bill Pay System (BBPS), processing over 45 percent of the transactions on the BBPS platform.

PhonePe forayed into financial services in 2017, providing users with safe and convenient investing options on its platform.

Since then, the company has introduced several Mutual Funds and Insurance products that offer every Indian an equal opportunity to unlock the flow of money and access to services.

“PhonePe lives by the same values as we do at Ribbit. We both believe that better money makes life better. PhonePe’s relentless pursuit of this principle in serving consumers and businesses all across India is a mission to live for,” said Micky Malka, Founder of Ribbit Capital.

Ribbit Capital invests globally in unique individuals and brands who aim to disrupt the financial services industry.

Founded in 2012, the firm targets disruptive, early stage companies that leverage technology to reimagine and reinvent what financial services can be for people and businesses. Ribbit invests primarily in the United States, Europe, Latin America, and Asia.

“We are excited to continue our partnership with PhonePe as they lead the digital payments sector in India, a market we believe is still in the early stages with significant growth potential ahead,” said Scott Shleifer, Partner, Tiger Global.

Founded in 2001, Tiger Global Management is a leading global investment firm focused on investing in internet-enabled businesses across the public and private sectors.

Since 2003, its private equity business has invested in hundreds of companies, from Series A to pre-initial public offering (IPO), across more than 30 countries.

The firm takes a long-term investment approach and aim to partner with dynamic entrepreneurs operating market-leading growth companies

“Our investment in PhonePe reinforces our conviction on backing best in class Founders while betting on the financial digitisation of the next 450 million Indians,” said Gopal Srinivasan, Chairman and Managing Director, TCF.

“We view this more as an opportunity in a population scale business for New India, driven by an outstanding management team with razor sharp focus, as driven by execution,

“PhonePe is the #1 transaction platform in India with an impressive moat of robust tech capabilities. Its strong growth in financial services across payments, insurance and lending with unopened doors to two massive opportunities through ONDC and Appstore, were key reasons in our investment thesis,” he added.

TVS Capital Funds manages TVS Shriram Growth Fund 3, one of the largest domestic capital funds in India with a vision to provide financial and capability capital to “next generation entrepreneurs” and to engage with them to build sustainable and scalable businesses.

It is investing from its third Fund with a total corpus of ₹ 2000 cr. focussed on venture growth space, predominantly in financial services and business to business (B2B) business services.

Some of its recent investments from this fund include Yubi (cred Avenue), Go Digit general insurance, Five-star Business finance, Increff amongst others.

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