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BENGALURU: PhonePe, the payments unit of the Flipkart group, received a capital injection of about Rs 1.3 billion from its parent entity Flipkart, based in Singapore, according to Paper.vc, a business intelligence firm. The capital infusion, which took place in two tranches, comes at a time when most companies are cutting back on new investments due to the challenges posed by the coronavirus.
On top of that, WhatsApp, whose parent company Facebook has just invested $ 5.7 billion in Jio platforms, could emerge as a new challenge for PhonePe in the Unified Payment Interface (UPI) electronic payment network, which also boasts large companies like Google Pay, Paytm and Amazon Pay.
The capital allocation was made on April 18 and 21. A source close to PhonePe confirmed that it has already received approximately Rs 213 crore. “The rest of the capital should continue as the general capital commitment is higher,” said this person. A PhonePe spokesperson did not immediately respond to TOI inquiries.
The new capital coming into PhonePe right now is important, as last year it held multiple rounds of talks with large investors to raise external capital. Among investors, China’s Tencent has been one of the biggest names he’s been in talks with.
Now, under new government rules, such a Chinese investment would require government approval, which digital companies fear may drag the process out longer. PhonePe has been looking for a valuation of $ 7-8 billion.
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On top of that, WhatsApp, whose parent company Facebook has just invested $ 5.7 billion in Jio platforms, could emerge as a new challenge for PhonePe in the Unified Payment Interface (UPI) electronic payment network, which also boasts large companies like Google Pay, Paytm and Amazon Pay.
The capital allocation was made on April 18 and 21. A source close to PhonePe confirmed that it has already received approximately Rs 213 crore. “The rest of the capital should continue as the general capital commitment is higher,” said this person. A PhonePe spokesperson did not immediately respond to TOI inquiries.
The new capital coming into PhonePe right now is important, as last year it held multiple rounds of talks with large investors to raise external capital. Among investors, China’s Tencent has been one of the biggest names he’s been in talks with.
Now, under new government rules, such a Chinese investment would require government approval, which digital companies fear may drag the process out longer. PhonePe has been looking for a valuation of $ 7-8 billion.
