Phonepe’s super-sized fundraise could swell to $1 billion

Phonepe’s super-sized fundraise could swell to $1 billion

author-image

Aditi Shrivastava

154 reads
author-image

Aditi Shrivastava

154 reads

Payments startup PhonePe is set to defy the current funding winter, raising $1 billion from parent company Walmart and private equity major General Atlantic. The deal would make PhonePe India’s most valuable fintech

November 25, 2022

5 MINS READ

Even as companies struggle for funding, and go into cash-conserving mode to survive the frosty market conditions, PhonePe is set to defy the prevailing funding winter, and how.

Its latest fundraise is expected to see new investor General Atlantic chip in with $250 million, while the remaining $750 million is expected to come from American retail giant Walmart, sources said. PhonePe is majority-owned by Indian e-commerce major Flipkart, which in turn, is majority owned by Walmart.

The deal is a complex one, with the primary investment only happening once PhonePe  finishes flipping its base from Singapore to India. This marks one of the first such moves by a unicorn—a significant development for the Indian startup ecosystem.

Before the flip can complete, however, PhonePe’s investors must agree to the move and the significant tax liability that will result from it.

As a company where Flipkart owns a majority stake, Flipkart’s investors must individually choose to either agree to the tax implications of the switch or make a secondary exit.

"For a lot of smaller stakeholders who don't want in, a secondary transaction will happen first," said a person directly aware of the deal. A PhonePe spokesperson declined to comment.

This funding round stands out for a few reasons: 

Read this article for free

Sign in using

Or

Sign in using your email

Don't have an account?

Forgot Password?

By signing up for The CapTable you agree to the

Terms of Service

and

Privacy Policy

of the platform.

Smart Information, Better Decisions

We report on the latest and most important developments in India’s biggest tech companies and disruptive startups so you can make better decisions.

Inside View with Org Charts

Know the key decision-makers with Org Charts. We thrive on decoding boardroom conversations so we can bring you a 360° view of what's happening at India's high-growth companies.

Seasoned Team

Tracking the highs and lows of India’s biggest internet companies over the past decade has given us access to the right decision-makers to interpret the latest state of play.

Inside View

We thrive on inside scoops and decoding boardroom conversations so we can bring you a 360° view of what’s happening at India’s high-growth companies.

share-button
like-button
share-button

For subscribers only

Premium Reads

>>

View More >>

Deeply reported and objective news on the country´s fastest-growing companies and the people behind them.