Walmart-owned digital payments major PhonePe has hit an annualised Total payment value (TPV) run rate of $1 Trillion (₹84 lakh crore). 

The fintech major attributed this growth to PhonePe holding over 50 per cent market share by value in the UPI payments space. PhonePe added that it has digitised over 35 million offline merchants spread across tier 2,3,4 cities and beyond, covering 99 per cent of pin codes in India. Further, PhonePe is making investments in new businesses like insurance and wealth management.

Commenting on this development, Sonika Chandra, Head of Consumer Business at PhonePe said, “We are delighted to reach the $1 trillion annualised TPV run rate. Our focus on simplifying customer experience while ensuring fast, secure and reliable transactions has helped us win the trust of millions of Indian users. We look forward to turbo-charging the next wave of growth for UPI payments in India with offerings like UPI lite, UPI international and Credit on UPI, to enable greater financial inclusion for Indians.’’

$100 million fund

PhonePe also announced that it has received an in-principle approval for its payment aggregator (PA) license from the RBI. This approval will allow the company to scale its payment solutions and enable digital inclusion for more small businesses and SMEs in the country. Last month, PhonePe raised $100 million funding from fintech backer Ribbit Capital, TVS Capital Funds (TCF) and Tiger Global at a pre-money valuation of $12 billion.

Addressing the jump in PhonePe valuation to $12 billion, in a recent earnings call, Walmart CFO John David Rainey said that this valuation was supported by the fintech company’s annualised TPV reaching more than $950 billion (about 50 per cent higher than just a year ago) and the platform also exceeded more than 4 billion monthly transactions. The US-based retail major holds a majority stake in Indian e-commerce platform Flipkart and PhonePe.