Oct 13: Following up on its acquisition of PhonePe, e-commerce major Flipkart has pumped in an amount of $500 million into the digital payments platform. The company had acquired PhonePe back in 2015.
PhonePe runs on the government-supported UPI platform and had done the largest number of transactions in August. Flipkart’s investment in PhonePe is, in fact the e-commerce company’s biggest fund infusion in PhonePe.
According to reports quoting Flipkart, the new investment would be used by PhonePe to boost its technology offerings, bring in new customers, and expand reach.
Hoping that PhonePe would soon be India’s most preferred digital payment platform, Flipkart said it is a crucial constituent of the e-commerce firm’s overall strategy towards building a comprehensive ecosystem for customers.
Flipkart had last week invested $39 million towards effectively expanding its team and marketing. With digital payments on the rise, post-demonetization, PhonePe has been seeing a steady increase in transactions.