PhonePe, the leading fintech startup in India, has received an additional $100 million investment from General Atlantic, the cherry on top of its ongoing funding round. With this investment, PhonePe has now raised a total of $850 million in funding, solidifying its position as India's most valuable fintech startup. The Bengaluru-based company is now valued at $12 billion.
PhonePe, which separated from e-commerce giant Flipkart last year, dominates transactions on the Unified Payments Interface (UPI), India's popular online transaction network. Processing over 8 billion transactions per month, UPI is the preferred choice for digital transactions in the country. With a strong foothold in the market, PhonePe shows all the signs of growth: earlier this year, the company announced its projection to process $1 trillion worth of transactions annually.
The financial software company’s growth trajectory faced potential obstacles, such as market share restrictions imposed by the National Payments Corporation of India (NPCI), the governing body of the UPI network. However, the NPCI recently extended the compliance deadline until 2025, granting PhonePe an additional two years for rapid expansion. Building on its massive registered user base of 450 million, PhonePe is venturing into various financial services, including wealth management, lending, stockbroking, ONDC-based shopping, and account aggregation. This strategic diversification allows PhonePe to capitalize on its strong market presence and cater to the evolving needs of Indian consumers.
General Atlantic’s investments reflect its confidence in the company's potential for long-term success. As a prominent growth equity investor based in New York, General Atlantic plans to further deploy around $3 billion in India over the next five to seven years, emphasizing the country's promising market opportunities.