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PhonePe gets Rs 427 crore from Singapore based parent company

The company reported a loss of Rs 1,904 crore on revenue of just Rs 184 crore, in the financial year ended March 31, 2019.

ET Bureau|
Last Updated: Feb 27, 2020, 09.25 AM IST
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Flipkart-parent Walmart continues to remain committed to PhonePe and has launched the payment method at its cash-and-carry outlets in the country.
BENGALURU: Walmart-owned Flipkart’s digital payments arm PhonePe has received a Rs 427 crore (about $60 million) cash infusion from its Singapore-based parent, regulatory filings show. This is the third such capital infusion into the loss-making digital payments company in the ongoing fiscal year, with investments totalling Rs 1,710 crore (around $240 million).

PhonePe Private Ltd, Singapore, got a little over 1 million shares in return for the investment, documents filed with the Registrar of Companies (RoC) showed.

The investments come at a time when PhonePe, which competes with rivals Google Pay, Amazon Pay and Paytm, is making heavy losses. The company reported a loss of Rs 1,904 crore on revenue of just Rs 184 crore, in the financial year ended March 31, 2019.

Big losses are the norm currently in the highly competitive digital payments space, with rival Amazon Pay reporting a loss of Rs 1,160.8 crore in the same period, while Paytm’s payments business lost Rs 2,615 crore.

However, Flipkart-parent Walmart continues to remain committed to PhonePe and has launched the payment method at its cashand-carry outlets in the country.

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