PhonePe, the India-based mobile payment technology developer owned by online marketplace operator Flipkart, is looking to raise up to $1bn in funding from investors including internet group Tencent, the Economic Times reported on Monday.
Hedge fund manager Tiger Global Management and unnamed other investors are also in talks to make commitments to the round, three people aware of the development told ET. One of the sources said PhonePe will not complete the funding process if investors value it lower than the $7bn to $8bn range.
Founded in 2015, PhonePe has developed a mobile app that enables users to transfer money by using a phone number as opposed to a bank account.
The service has 50 million monthly active users and was responsible for up to 290 million monthly transactions as of April this year. It is also venturing into online lending, wealth management and insurance services.
PhonePe was acquired in 2016 by Flipkart, which has been majority owned by retailer Walmart since August 2018. One of the sources said the board will have to approve the independent fundraising and the final valuation.
Flipkart invested a total of $189m in PhonePe in 2018, spreading the money across tranches in March, April and August, according to TechCircle. Prior to that, the firm had backed it with a $38.7m investment in October 2017.