PhonePe in talks to raise $700 million at $12 billion valuation

Digital payments firm PhonePe is in talks with its parent Walmart, General Atlantic, and other existing investors to raise about $700 million, sources said.

The round is expected to more than double the firm’s valuation to around $12 billion and make it India’s most-valued financial technology firm ahead of Razorpay, which is valued at $7.5 billion.

“PhonePe has been in talks with investors for a while to raise the funding round and is seeking valuation to about $12 billion,” said a person familiar with the matter.

PhonePe was last valued at about $5.5 billion in December 2020 after raising $700 million in primary capital from existing Flipkart investors including Tiger Global, and Walmart, the world’s largest retailer.