PhonePe will invest more in insurance after raising $350 million

Indian mobile payments app PhonePe closed a $350 million funding round from General Atlantic at a pre-money valuation of $12 billion. The financing follows the company’s split from Flipkart.

Founded in December 2015, PhonePe has over 400 million registered users, meaning that more than one in four Indians are on PhonePe. In 2021, it received its insurance broker license, allowing to sell life and non-life insurance products. Insurance partners include ICICI Prudential Life Insurance and Bajaj Allianz. Now, the company plans to use the new funds to further expand into Insurance, Wealth Management, and Lending.

“I would like to thank General Atlantic and all our existing and new investors for the trust they have placed in us. PhonePe is proud to help lead India’s country-wide digitization efforts and believes that this powerful public-private collaboration has made the Indian digital ecosystem a global exemplar. We are an Indian company, built by Indians, and our latest fundraise will help us further accelerate the Government of India’s vision of digital financial inclusion for all. We look forward to delivering the next phase of our growth by investing in new business verticals like Insurance, Wealth Management and Lending, while also facilitating the next wave of growth for UPI payments in India.’” – Sameer Nigam, Founder and CEO at PhonePe.

PhonePe also recently announced a full separation from Flipkart . After a partial separation from Flipkart in December 2020, a number of Flipkart shareholders, led by Walmart, acquired shares in the recent separation.