Walmart invests $200 million in Indian fintech startup PhonePe
Walmart, the American retail giant, has invested $200 million in PhonePe, one of India’s largest fintech platforms. The investment is part of PhonePe’s ongoing funding round that values the startup at $12 billion.
PhonePe, the Online payment gateway platform and leader in the Fintech industry of India, was founded in 2015 and owned by Walmart in 2018. The startup allows users to send and receive money, pay bills, buy insurance, invest in mutual funds and stocks, and shop online using its app.
- PhonePe will use most of these investments in expanding new business segments like insurance, loans lending to customers, and stockbroking aspects.
The new funding will help PhonePe expand its offerings and reach more customers and merchants in India’s fast-growing digital economy. PhonePe plans to use the funds to build and scale new businesses such as insurance, wealth management, lending, stockbroking, ONDC-based shopping, and account aggregators.
PhonePe also aims to boost the adoption of UPI payments in India, which is a government-backed system that enables instant transfers between bank accounts. PhonePe is a leader in UPI transactions, processing over 45% of them on its platform.
Walmart’s investment reflects its confidence in PhonePe’s growth potential and its commitment to supporting India’s digital transformation. Judith McKenna, president and CEO of Walmart, 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.”
Sameer Nigam, CEO, and founder of PhonePe thanked Walmart for its continued support and said: “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.”
- PhonePe is one of the most valuable startups in India and competes with other fintech players such as Paytm, Google Pay, and Amazon Pay.
- The startup claims to have digitized over 35 million offline merchants across Tier 2–4 cities in India.
- It also offers several mutual funds and insurance products that cater to every Indian’s financial needs.
The investments from Walmart have indicated the upcoming rise and boosting of financial technology corporations. It paved the way for more developments and advancements in the FinTech industry, especially in India. With Walmart’s backing and a large user base, PhonePe is well-positioned to capitalize on the opportunities in India’s growing fintech market.
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