Flipkart infuses Rs 452 crore in payments unit PhonePe

By

Maverick Martins

Published
Aug 10, 2018

Flipkart has strengthened its payments business PhonePe with a fresh capital infusion of Rs 452 crore (approx $65.7 million) through its Singapore-based arm Flipkart Payments Pvt Ltd.

Earlier this year, Flipkart had pumped in Rs 518 crore (approx $80 million) into PhonePe in its quest to make PhonePe the most preferred digital payments app in India by scaling up operations across all sectors.
 
According to documents sourced from RoC by TOI through business research platform Paper.vc, PhonePe allocated over 21.4 lakh shares to Flipkart Payments for the fresh round of capital infusion. The resolution was approved last month, the documents showed.

PhonePe will be using the capital to scale up its operations across online and offline channels. It will also use funds to acquire smaller firms to boost its presence in the payments business in India.
 
PhonePe had recently acquired Zopper Retail, a hyperlocal point of sale platform for small and medium business to expand its offline merchant network across India.
 
PhonePe competes with the likes of Amazon Pay, Paytm and Mobikwik in India’s digital market. Flipkart’s rival, Amazon, has also been ramping up efforts to strengthen its digital payments platform, Amazon Pay.