PhonePe has raised about Rs.405 crore from its Singapore based holding entity. The funds have been raised at a post-market valuation of about $1.57 billion.
As per sources, PhonePe could be in talks with Tencent and Tiger Global to go for a $1 billion funding round at a valuation of around $8 billion. Whereas Morgan Stanley had valued PhonePe at around $7 billion, Bloomberg had stated the valuation to be in the range of around $10 billion. However, things haven’t been materialized with Tencent and Tiger Global as discussions may still be on.
PhonePe competes with other big fin-tech players such as Paytm and Google Pay. Another major entry to the Indian fintech market would be WhatsApp, which is scheduled to launch its payment solutions app by Dec 2019. WhatsApp’s entry is huge and it could pose a tough competition to Paytm, PhonePe and Google Pay provided that it has 400 million user base in India already.