The co-founder of Flipkart, Binny Bansal, is thinking about investing $100 to $150 million in the online payment system PhonePe. According to a story, the development was discovered as the digital payments startup was conducting a financing round. If it is a success, the investment will rank among the largest one-off investments in a modern business.
The article claimed, citing an individual with knowledge of the situation, “The sum that he (Binny Bansal) will invest has not yet been determined. The ongoing negotiations will probably come to an end soon.”
General Atlantic, Tiger Global, Ribbit Capital, and other investors have already contributed over $450 million towards PhonePe’s first financing. Walmart is still the biggest investor in PhonePe, with a stake of around 70% in the business.
In the Indian digital payments market, PhonePe has a strong position. Like its competitors, the app makes use of the Unified Payments Interface (UPI)
In 2016, Bansal was crucial in helping Flipkart acquire ownership of PhonePe. According to the story, he still serves on the PhonePe board and retains tight ties with Sameer Nigam and Rahul Chari, the company’s co-founders.
Given that the IT industry is experiencing a funding shortage, the deal is significant.
PhonePe’s Statistics
According to the most recent UPI statistics, PhonePe executed 3,802.67 Cr UPI transactions in January 2024, which represents more than 47% of the overall transaction volume. As a result of processing transactions of INR 6.51 Lakh Cr., it also obtained a 50.2% market share in terms of the transaction value.
In preparation for their respective IPOs, the two Walmart-owned companies recently severed their ties. The financial titan recently split from Flipkart.
Judith McKenna, President and CEO of Walmart claims that the platform records almost four billion transactions each month. The total payment volume (TPV) for PhonePe has reportedly topped $950 billion. PhonePe rivals, among others, Google Pay, Paytm, Amazon Pay, and WhatsApp Pay.
Binny Bansal’s other investments
Mr. Bansal, who along with Sachin Bansal co-founded Flipkart, is recognised for his investments in innovative companies like urban mobility startup Yulu, cloud kitchen platform Curefood, cutting-edge insurer Acko, electric scooter producer Ather Energy, loan platform Rupeek, and countless others.
The majority of Binny Bansal’s investments are channeled through companies like Three State Capital, 021 Capital, and xto10x Technologies, all of which are domiciled in Singapore. Data from Inc42 shows that between 2014 and February 2024, Binny Bansal and his investment companies participated in funding rounds totaling $658 Mn.
Binny Bansal has a 12–13% investment in Curefoods and an 8–9% stake in the unicorn of the insurance technology industry, Acko. He put about $25–30 million into the former and about $30 million into the latter.
About PhonePe
In 2015, three former Flipkart employees—Sameer Nigam, Rahul Chari, and Burzin Engineer—founded PhonePe. At the moment, PhonePe is hailed as ruling the Indian digital payments industry.
The app enables users to manage their bank accounts digitally, gain access to them whenever it’s convenient, and use their money in any way they see fit. Sources from July 20, 2022 claim that PhonePe, whose current headquarters are in Singapore, will relocate to India.
One of the most widely used UPI apps, PhonePe enables users to order food, book transportation, make purchases, and more online. It is supported by the majority of Indian retailers. PhonePe was created to act as a worldwide, hassle-free, and secure mobile payment network.
