Binny Bansal, co-founder of Indian e-commerce giant Flipkart, is reportedly looking to invest between $100 million and $150 million in PhonePe, the digital payments platform that was spun off from Flipkart in 2018.
According to sources familiar with the matter, Bansal is in advanced talks to make the investment in PhonePe, which has emerged as one of the leading players in India’s rapidly growing digital payments market. The investment would reportedly value PhonePe at around $10-12 billion.
PhonePe has seen tremendous growth in recent years, thanks in part to India’s push towards digital payments and the government’s demonetization efforts. The platform has over 300 million users and has been processing over 1 billion transactions per month since November 2020.
Bansal’s investment could be a major boost for PhonePe as it looks to expand its operations and take on rivals such as Google Pay and Paytm. The investment could also help PhonePe in its plans to go public in the near future.
Bansal, who left Flipkart in 2018 following allegations of “serious personal misconduct”, has been investing in a number of startups in recent years. He has reportedly been looking to make larger investments in promising startups that have the potential to become unicorns, or companies valued at over $1 billion.
PhonePe has already received significant investment from Flipkart, which acquired the platform in 2015. In 2020, Flipkart announced that it had raised $1.2 billion in funding led by Walmart, with PhonePe also receiving a $700 million investment from the same round.
PhonePe has been expanding its offerings in recent years, adding services such as mutual funds, insurance, and gold investment. The platform has also been focusing on expanding its merchant base, partnering with thousands of businesses across India.
The digital payments market in India is expected to continue its rapid growth in the coming years, driven by factors such as rising smartphone adoption, government initiatives, and a growing middle class. A report by Google and Boston Consulting Group projected that India’s digital payments market could reach $500 billion by 2025, up from $50 billion in 2019.
PhonePe is well-positioned to take advantage of this growth, thanks to its large user base and expanding range of services. With Bansal’s investment, the platform could be poised for even greater success in the coming years.
In a statement, a PhonePe spokesperson said, “As a policy, we do not comment on speculation and rumors. We remain fully focused on building our business and making digital payments a way of life for every Indian.”
Bansal has not commented publicly on the reported investment. However, sources say that he is bullish on PhonePe’s potential and sees the platform as a key player in the future of digital payments in India.
