PhonePe — the popular UPI-based payments app from Flipkart, has received around ₹254 crore ($38.7 million) in a fresh round of funding from its Singapore-based group entity Flipkart Payments.
As per the documents filed by the company with the Ministry of Corporate Affairs, it raised money on 31st August through the allocation of 1.76 million equity shares at a subscription price of ₹1,445.29 apiece.
Prior to this, the payments app had received ₹83.68 crore in October 2016 by allocating 4.18 million equity shares at ₹200 apiece. Before that, in April 2016, it had received ₹102. 94 crore against 5.42 million shares at a subscription price of ₹190 apiece.
Last month, PhonePe claimed that it has more than doubled the number of UPI transactions to 7.47 million in August from 3.5 million in May. The company also said that its share rose steadily from 39 percent in July and 36 percent in June to 45 percent in August.
With over 45 percent market share, the app claims to to have overtaken Bharat Interface for Mobile (BHIM) in terms of total transactions.
Besides launching a more seamless payments solution with UPI 2.0, the company also has plans of foraying into wealth management as well as in cross-selling and up-selling of financial products.
In India, apart from the government-backed BHIM, PhonePe also competes with digital wallet service providers such as Paytm and FreeCharge. However, Google Tez, which was launched last month, poses an imminent threat to its market share in India.