PhonePe, the leading digital payments platform in India, has raised an additional $100mn from General Atlantic, a leading global growth equity firm. The funding comes as part of PhonePe's growth strategy to expand its market share in India's rapidly growing digital payments market.
PhonePe's platform is built on the Unified Payments Interface (UPI) and allows users to transfer money, pay bills, and make purchases both online and offline. The company has grown rapidly since its launch in 2016, and currently has over 280 million registered users.
The latest funding round will help PhonePe to further invest in its technology and product development, as well as expand its merchant network and offer more services to users. PhonePe's CEO, Sameer Nigam, stated that the company aims to reach 500 million registered users in the next few years.
General Atlantic's investment in PhonePe is a testament to the potential of India's digital payments market, which is expected to grow to $1 trillion by 2023. The investment firm has previously backed other successful fintech companies such as Ant Financial, Alibaba's financial affiliate, and Adyen, a Dutch payments processor.
The company has partnerships with major e-commerce players such as Flipkart and Swiggy, and aims to continue to leverage these partnerships to grow its user base.
PhonePe's success has also been fueled by the rapid growth of e-commerce in India, which is expected to reach $120 billion by 2025.
PhonePe's latest funding round is likely to attract further interest from investors, as the company continues to expand its services and reach in the Indian market. With the digital payments landscape in India evolving rapidly, PhonePe is well-positioned to capitalize on the growth opportunities presented by the country's expanding digital economy.