https://cdn.benzinga.com/files/images/story/2023/03/17/phonrpe.png?optimize=medium&dpr=2&auto=webp&crop=1200%2C800
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Walmart Inc (NYSE: WMT) backed Indian fintech platform PhonePe raised $200 million in primary capital from the U.S. retailer at a pre-money valuation of $12 billion.
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This new funding is part of PhonePe’s ongoing fundraising of up to $1 billion in the capital following its domicile shift to India in 2022.
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PhonePe has raised $650 million from several global investors with this tranche.
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PhonePe expects further investments.
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PhonePe plans to deploy these funds to build and scale new businesses like Insurance, Wealth Management, Lending, Stockbroking, ONDC-based Shopping, and Account Aggregators.
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The fund will also help PhonePe turbo-charge the next wave of growth for UPI payments in India, including UPI lite and Credit on UPI.
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At a $12 billion valuation, PhonePe is India’s most valuable fintech startup that competes with Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL) Google Pay, and Paytm.
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PhonePe dominates transactions on UPI, a network built by a coalition of retail banks in India. UPI is the most popular way Indians transact online, TechCrunch reports.
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Industry experts see PhonePe becoming a bank, which justifies the lofty valuation.
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PhonePe projects revenue of $325 million for CY22 and $504 million for CY23, according to a valuation report. The startup does not expect to turn EBIDTA positive, a key profitability metric, until CY25.
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Price Action: WMT shares closed lower by 0.97% at $138.28 on Thursday.
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This article Walmart-Backed Indian Fintech PhonePe Inches Closer To $1B Capital Goal With Latest Fundraise originally appeared on Benzinga.com
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