Ahead Of IPL, Flipkart’s PhonePe Receives $107.6 Mn Cash Infusion

Ahead Of IPL, Flipkart’s PhonePe Receives $107.6 Mn Cash Infusion

SUMMARY

This deal may be one of the last tranches of the committed amount of $500 Mn

The funds will be utilised for its promotional spending for the upcoming IPL 2019

Currently, the company has earmarked INR 500 Cr for its promotional investments

Flipkart owned online payment company PhonePe has raised INR 743.5 Cr ($107.6 Mn) from its Singapore-based parent entity PhonePe Pvt Ltd, formerly known as Flipkart Payments, according to a RoC filing.

In 2017, PhonePe’s parent entity Flipkart had committed an investment of $500 Mn (INR 3,451 Cr) to the digital payments company. This may be one of the last tranches of that committed sum, reported ET.

This fresh funds will be utilised by the company bulk up its cash position as it is an official co-sponsor for the TV broadcast of VIVO IPL 2019. Under this, the company has also announced Bollywood star Aamir Khan as the brand ambassador. For this upcoming match series, PhonePe will be launching a series of new TV ads featuring the actor. It has also earmarked INR 500 Cr ($72.4 Mn) for its promotional investments.

This development came in after it was reported that PhonePe is looking to boost its a valuation to $10 Bn and is aiming to raise fresh funds from private equity (PE) firms KKR & Co, General Atlantic LLC, Tiger Global and Tencent.

PhonePe refused to comment on the development in response to Inc42’s enquiry.

Prior to this, PhonePe had received a tranche of $65.8 Mn (INR 451 Cr) from Flipkart in August 2018. Earlier, Flipkart had also infused $79.6 Mn (INR 549 Cr) in March 2018 and $38.7 Mn (INR 267 Cr) in August 2017.

PhonePe has been looking to up its game as the digital payment sector continues to grow. In October 2018, it was reported that PhonePe had been looking to raise funds in order to catch up with its rival Paytm.

As of January 2019, Paytm recorded 221 Mn transactions while PhonePe and Google Pay clocked nearly 220 Mn transactions each. Currently, these three players are dominating the Indian online payment space.

Earlier in March, it was also reported that government-backed instant real time payment system Unified Payments Interface (UPI) had clocked in 674.19 Mn transactions in February 2019.

In order to step up its game, PhonePe had launched its own wealth management unit, PhonePe Wealth Services with an initial authorised capital of $7.12 Mn (INR 50 Cr) and paid up capital of $2.85 Mn (INR 20 Cr).

Following this, the company also introduced financial services for the millennial generation in January. PhonePe cofounder and CEO Sameer Nigam explained that with this initiative, the company aims to tap the growing base of millennials looking to manage their wealth.

Not only online but the company is also looking to tap the offline payment sector. Earlier, in November 2017, PhonePe launched its point of sale device to serve the needs of small merchants in order to get into further tie-ups with small merchants.

You have reached your limit of free stories
Become An Inc42 Plus Member

Become a Startup Insider in 2024 with Inc42 Plus. Join our exclusive community of 10,000+ founders, investors & operators and stay ahead in India’s startup & business economy.

2 YEAR PLAN
₹19999
₹7999
₹333/Month
Unlock 60% OFF
Cancel Anytime
1 YEAR PLAN
₹9999
₹4999
₹416/Month
Unlock 50% OFF
Cancel Anytime
Already A Member?
Discover Startups & Business Models

Unleash your potential by exploring unlimited articles, trackers, and playbooks. Identify the hottest startup deals, supercharge your innovation projects, and stay updated with expert curation.

Ahead Of IPL, Flipkart’s PhonePe Receives $107.6 Mn Cash Infusion-Inc42 Media
How-To’s on Starting & Scaling Up

Empower yourself with comprehensive playbooks, expert analysis, and invaluable insights. Learn to validate ideas, acquire customers, secure funding, and navigate the journey to startup success.

Ahead Of IPL, Flipkart’s PhonePe Receives $107.6 Mn Cash Infusion-Inc42 Media
Identify Trends & New Markets

Access 75+ in-depth reports on frontier industries. Gain exclusive market intelligence, understand market landscapes, and decode emerging trends to make informed decisions.

Ahead Of IPL, Flipkart’s PhonePe Receives $107.6 Mn Cash Infusion-Inc42 Media
Track & Decode the Investment Landscape

Stay ahead with startup and funding trackers. Analyse investment strategies, profile successful investors, and keep track of upcoming funds, accelerators, and more.

Ahead Of IPL, Flipkart’s PhonePe Receives $107.6 Mn Cash Infusion-Inc42 Media
Ahead Of IPL, Flipkart’s PhonePe Receives $107.6 Mn Cash Infusion-Inc42 Media
You’re in Good company