PhonePe gets $59.6 million from its parent entity

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Indian digital payments company PhonePe just received backing from its Singapore-based parent. A total of $59.6 million (427.24 Cr) was provided by the Singapore entity to the Bengaluru-based company.

Currently, PhonePe claims over 175 million users and the company provides them with the “super-app” that integrates 50+ digital apps like Goibibo and OYO. The company’s rapid growth can be attributed to rapid expansion a plan that connects with several merchant networks, both online and offline.

Last year, the company had launched a feature called ‘switch’ that allowed users to utilize the mobile app for groceries, shopping and more without downloading any other application. This led to a huge increase in user engagement on its own app. Recently, PhonePe also launched a UPI PhonePe ATM service through which users can send money to merchants through the app to get an equivalent amount of cash.

PhonePe’s parent company Walmart is quite happy with its performance and is now looking at PhonePe to be the largest transactional platform in India. Walmart had eyed PhonePe right from the acquisition of Flipkart in 2018 and now the retail giant is making plans to further enhance PhonePe’s operations across India.

In 2020, Flipkart passed a resolution for PhonePe to grow as an independent entity and now the company is planning to raise fresh funding of up to $1 billion. The exponential growth of PhonePe has attracted investors and the company is now valued at $7 billion.