PhonePe, India’s leading fintech platform, announced today that it raised $200 million more in primary capital from Walmart at a pre-money valuation of $ 12 billion. The company now has $650Mn in funding from global investors. In addition, the company anticipates additional investments. We will discuss how PhonePe raised $200 million from Walmart in this blog.
PhonePe was started in 2015 by former executives at Flipkart, Rahul Chari, Sameer Nigam, and Burzin Engineer. Binny and Sachin Bansal’s company then acquired it in 2016. Walmart purchased Flipkart in 2018. PhonePe was also part of that transaction. After NGPay Pvt and FX Mart Pvt, the digital payments company was Flipkart’s third major acquisition. In 2020, PhonePe announced in December that it had raised $700 Million in a Walmart-led funding round. PhonePe was valued at $5.5 billion. PhonePe is currently seeking $1 billion in funding. The Walmart funding was part of the ongoing financing round. PhonePe will use these funds to expand its digital payment services and create new products.
PhonePe will use these funds to create and scale new businesses such as Insurance, Wealth Management, and Stockbroking. In addition, PhonePe will use fundraising to help boost the next wave in growth for UPI payments, including UPI lite (and Credit on UPI).
Here are the pros to starting your fintech company now
Businesses across many industries have experienced turbulent times this year. Entrepreneurs are choosing to wait for the pandemic to end before embarking on new ventures. This decision is sound in many other areas, but not finance. As a result, the demand for money management technology has only increased.
Let’s look at the top reasons to start a fintech business.
Electronic finances offer solutions that are becoming more useful for people. Financial technology has encompassed every possible niche, including personal money management, investment technology, and insurance technology. Users want to feel in complete control of their finances and want it to be done through one interface that is always with them.
A fintech app development company is a response to the urgent needs of millions of potential customers. It also requires attention that startups cannot get in other markets.
It will be much easier to build a fintech application. Additionally, there are more tools available to integrate third-party products. Finally, programmers can access fintech consulting services to gain insight into the inner workings and financial systems.
Banks and other government institutions in many countries support digitalization and have begun to tailor their services and activities to aid fintech businesses.
Insurtech is gaining immense popularity
Insurance technology is a popular fintech application because of its data-driven predictive capabilities.
Insurtech uses artificial Intelligence to process criminal and medical records of individuals whenever legal. In addition, credit history and available social media information are also processed to help companies reduce risks and offer the best cost-effective options to customers.
Accounting for enterprises
It is possible to make a fortune by starting a fintech business and focusing on businesses.
Due to the COVID-19 pandemic, enterprises have significantly shifted to online operations, and this trend will likely continue. As a result, enterprise fintech software is a highly competitive and lucrative niche.
The rise of cryptocurrency
Digital currencies are not a trendy buzzword. People trust decentralized apps to manage their money, and they seek out the best and most reliable platforms. Although many trading and investment apps are available on the cryptocurrency market, not all offer 100% user satisfaction.
PhonePe is a rapidly growing digital payment platform in India. The mobile app development company had over 250 million users and processed over 1,000,000 transactions each month as of December 2020. In addition, PhonePe has received additional funding from Walmart. This will allow it to grow and compete with the other significant players in India’s digital payments market, such as Paytm or Google Pay. Get in touch with us for more information about FinTech.