Flip­kart to in­vest $500M in pay­ments arm PhonePe

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Tech­nol­ogy gi­ant Google’s In­dia cloud cen­tre, slated to be­come op­er­a­tional in Mum­bai by the end of 2017, will spur eco­nomic ac­tiv­ity in the coun­try, a top ex­ec­u­tive from the com­pany said.

FLip­kart has com­mit­ted $500 mil­lion for its pay­ments plat­form PhonePe, which is scal­ing its op­er­a­tions. The e-com­merce ma­jor ac­quired PhonePe in 2015 and has since then in­vested $75 mil­lion in the plat­form.

This is one of the largest sin­gle in­vest­ment com­mit­ments in the In­dian fi­nan­cial tech­nol­ogy pay­ments space and comes at a time when e-tail­ers are in­vest­ing to­wards build­ing a strong pay­ments sys­tem.

“The in­vest­ment will be used to scale up our tech­nol­ogy plat­forms, and ex­pand our mer­chant net­work and con­sumer base rapidly. We have been grow­ing at over 100 per cent ev­ery two months this year, and this in­vest­ment will help us main­tain the same ag­gres­sive growth rate for the next two years,” said Sameer Nigam, co-founder and CEO, PhonePe.

PhonePe, which has over 45 mil­lion in­stalls, has recorded over 16 mil­lion trans­ac­tions on the back of the suc­cess­ful Flip­kart Big Bil­lion Days fes­ti­val sale in Septem­ber. The fin­tech firm’s an­nual run rate, as a re­sult, touched a new high of $3.5 bil­lion in terms of To­tal Pay­ments Vol­ume ( TPV) in Septem­ber. This ramp-up is the fastest in the In­dian dig­i­tal pay­ments space, the com­pany claimed.

“PhonePe is a crit­i­cal part of our over­all strat­egy at Flip­kart to build a com­pre­hen­sive ecosys­tem for our cus­tomers. We’re fully com­mit­ted to make PhonePe the most pre­ferred dig­i­tal pay­ments app in In­dia,” said Binny Bansal, group CEO, Flip­kart.

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