PhonePe has raised additional $200 million in primary capital from its parent Walmart, at a pre-money valuation of $12 billion. This funding comes as a part of PhonePe’s ongoing fundraise of up to $1 billion.

With this tranche, the company has raised $650 million in the ongoing round so far and expects more investments to be announced in due course. PhonePe plans to deploy these funds to build and scale new businesses like insurance, wealth management, lending, stockbroking, ONDC-based shopping and account aggregators. The fundraise will also be used to support offerings like UPI Lite and credit on UPI.

On the this fundraising, Sameer Nigam, CEO and Founder of PhonePe said, ‘’We would like to thank Walmart, our majority investor, for continued support for our long-term aspirations. We are excited about the next phase of our growth as we build new offerings for Indian consumers and merchants, along with enabling financial inclusion across the nation.’’

Also read: Flipkart completes full separation of PhonePe 

President and CEO for Walmart International Judith McKenna said: “We are excited about PhonePe’s future and have confidence in how it continues to expand its offerings and provide access to financial services for Indians at scale. India is one of the world’s most digital, dynamic and fastest growing economies, and we are pleased to have the opportunity to continue to support PhonePe.”

PhonePe was founded in December 2015. It has around 45 crore registered users and has digitised over 3.5 crore offline merchants spread across Tier-2,3,4 and beyond.

PhonePe forayed into financial services in 2017 and introduced several mutual funds and insurance products.

Early this month, PhonePe announced that it received an in-principle approval for its payment aggregator (PA) license from the Reserve Bank of India (RBI). It further stated that its annualised total payment value (TPV) run rate reached $1 trillion (₹84 lakh crore).