After the Flipkart board have given approval to hive off the PhonePe, which even paves the way of a solo fundraise, the payment platform is also in talks now to raise around $1 Billion from the marquee investors like the Tiger Global and China Tencent, according to the report which has been revealed.
Tiger Global and Tencent had backed Flipkart, which even acquired the PhonePee 3 years ago. Moreover, the outcome of the talks would depend on the valuation at which these investors are willing to put the money in the firm. PhonePe is also looking of at least $7-$8 Billion and will not be going to take any of the transaction towards at a lower level.
“Valuation can make or break these talks. PhonePe is in discussions with Tencent as it could leverage a strategic investor willing to back it for the long-term, especially to fight well capitalized Paytm,” a person aware of the discussions said. This person added it could take another two-three month for the investments talks to close formally.
This is not just only the first time when the PhonePe has explored independent funding as the PhonePe had held talks for the investment from some of the strategic partners like the Paypal in the year 2017.
PhonePe, before the Walmart acquired the Flipkart got a capital commitment of around $500 Million in the year 2017. Little over half of this capital has been pumped into the PhonePe, according to the report which has been revealed.
PhonePe has also got the capitalized rivals such as the Google pay, Paytm which are even flighting for the local payment markets.