With an increase in digital payments in the country and the central Government’s ambitious plan for a digitised economy, the industry has become super competitive.
Recently, the Singapore entity of PhonePe, PhonePe Ptc Ltd bagged funding of 28 Million dollars from Flipkart. This is the first round of funding in the F.Y 2020.
According to secret sources, a larger round of funding with an uptake of $100 Million is on the table. This is consistent with the theory that PhonePe was one of the primary reasons for the U.S based Walmart buying Flipkart.
PhonePe’s CEO and co-founder Sameer Nigam said that the company is expected to become profitable by 2022 and hopes to file for I.P.O by 2023. I.P.O or Initial Public Offering is the act of offering the stock of a company on the stock exchange for the first time.
Meanwhile, the Bengaluru based company aims to pursue its long followed ‘Offline to Online Strategy’. This strategy though common with its competitors like Paytm
This funding comes at a time when PhonePe has registered a decline of over 35% in its over the counter transactions. Even though Flipkart has invested more than $928 Million in the company, Paytm continues to be its foremost competitor, almost completely dominating the industry due to its recently held $ 1 Billion funding round. But all this is pegged to change thanks to the historic Jio-Facebook partnership. This deal is expected to completely monopolise the digital payments industry and change it beyond recognition.
Amid this tightly wound competition, PhonePe seems to have several arrows in its quiver as the company is collaborating with delivery fleets like SwiggyGenie to tide over the waves generated by the pandemic.