PhonePe gets Rs 743 crore capital infusion from parent company
Flipkart owned digital payments major PhonePe has got a fresh capital infusion of Rs 743 crore ($107.5 million) from its Singapore-registered parent entity PhonePe Pvt Ltd, formerly known as Flipkart Payments.
In August 2018, Flipkart had made a capital infusion of Rs 452 crore ($65.7 million) in Phonepe which helped the company scale up its operations across online and offline channels.
With regular funding from its parent firm, PhonePe has made significant inroads in the digital payments space across all sectors and acquired over 100 million users in a short span of time.
PhonePe will be using majority of the funds in its marketing activities this year as it plans to spend Rs 500 crore for promotional activities to further strengthen its market position in the country.
The company has already signed Bollywood actor Aamir Khan as its brand ambassador and will be launching a marketing campaign featuring the actor in the coming days.
India is the fastest growing e-commerce market in the world and 'Global Payments Report 2016' states that the digital payment sector is set to reach US$63.7 billion by 2020. Flipkart sees huge potential for growth in this segment and is looking to make deeper inroads for growth in this segment.
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.
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