Retail giant Walmart's shareholding in decacorn fintech firm PhonePe has dropped to 85 per cent from 89 per cent following its ongoing fundraise of $1 billion, the US based firm said.

PhonePe has now raised a total of $850 million of primary capital in the current round till the end of May. PhonePe recently launched the UPI LITE feature for users to initiate low-value payments under ₹200, with a tap from their UPI LITE account without entering a PIN.

"During the three months ended April 30, 2023, the company received $0.5 billion related to new rounds of equity funding for the company's majority-owned PhonePe subsidiary, which reduced the company's ownership from approximately 89 per cent as of January 31, 2023, to approximately 85 per cent," Walmart said in a latest regulatory filing.

Till April 30, the Walmart group firm has raised $750 million, including a $200 million capital infusion from Walmart.

General Atlantic and its co-investors have contributed $550 million in the ongoing $1 billion funding round of PhonePe at a pre-money valuation of $12 billion.

Ribbit Capital, Tiger Global and TVS Capital Funds have invested $100 million during the funding round.