PhonePe obtains $50 mn from Tencent

By siliconindia  |  Thursday, 19 August 2021, 11:02:06 AM IST

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Digital payments major PhonePe has get a fund infusion of $ 66.5 million that makes around 492 crore in its Singapore-based entity would include investment from Chinese firm Tencent. According to a regulatory filing in Singapore, investment firm Tencent has infused $ 50 million in the company and Tiger Global $ 16.5 million.

In this funding round, PhonePe is securing $700 million in primary capital at a post-money valuation of $ 5.5 billion from existing Flipkart investors led by Walmart. The announcement has been made by its parent major Flipkart in December 2020. PhonePe, which has full-fledged operations in India alone, eyes to use the fund to support business transaction in Singapore which includes getting stake in companies registered there.

A source aware of the development at PhonePe said the fund raised from Tencent will not be brought to India because of restrictions imposed under Press Note 3 which calls for scrutiny of investment made by entities based in countries sharing a land border with India. The company is in talks to acquire a stake in Indus OS which operates in India but is incorporated in Singapore. The source said the company will approach authorities concerned whenever required in compliance with norms in India.

The source said the shares were allocated to Tencent before the issuance of Press Note 3 in April 2020 but the investment has come now. Flipkart continues to be the largest stakeholder in the company with 87.30 percent stake followed by the parent firm Walmart. Tencent has less than a two percent stake. Another source aware of the foreign investment proposals states there is no submission from PhonePe for clearance of Tencent investments in the company.

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