Walmart, a US-based e-commerce company that owns a majority stake in Bengaluru-headquartered PhonePe, has invested $200 million in the Indian startup.

This investment is the third tranche of an ongoing funding round that has allowed PhonePe to raise a total of $650 million in recent weeks, despite the market downturn. It had previously raised $350 million led by private equity firm, General Atlantic in January and another $100 million from Tiger Global and Ribbit in February.

Walmart-owned PhonePe raises $350 million led by General Atlantic, at a valuation of $12 billion
Digital payments app, PhonePe, owned by Walmart, has raised $350 million at a valuation of $12 billion in a funding round led by private equity firm, General Atlantic. PhonePe, which was acquired by Walmart in 2018, plans to use the new funds to “make significant investments in infrastructure, incl…

PhonePe, which recently separated from the ex-parent firm Flipkart and completed its relocation from Singapore to India aims to raise up to $1 billion through this financing round, and the ongoing round has valued the company at a pre-money valuation of $12 billion, making it India's most valuable fintech startup.

Walmart and other shareholders paid nearly $1 billion in tax for Phone Pe relocation to India
U.S. e-commerce giant Walmart has confirmed that it had already paid the Indian government most of the nearly $1 billion in tax owed after digital payments company PhonePe shifted its headquarters from Singapore to India, per a Bloomberg report. The bill stems from the relocation and rise in the

According to the digital payments major, it plans to deploy these funds to build and scale new businesses like insurance, wealth management, lending, stockbroking, and Open Network for Digital Commerce (ONDC)-based shopping and account aggregators. It will also help PhonePe grow Unified Payments Interface (UPI) payments in the country, where it is already the market leader.

PhonePe competes with other digital payment services like Google Pay and Paytm, and currently dominates over 50% of all UPI transactions in India, processing more than 4 billion of the total 8 billion transactions per month.