E-commerce giant Flipkart has committed a future investment of $ 500 million on its payment arm PhonePe. Reportedly, this investment would be one of the largest commitments in the Indian fintech payment domain. This adds to $75 million worth of investments already made by Flipkart in PhonePe since acquiring 2015.
Various reports have suggested that the fintech industry is witnessing a massive change due to the rise in the mobile internet usage. According to market research projections, India’s digital payment sector is predicted to inflate to $500 billion by 2020, portraying around 15 per cent of the Gross Development Product (GDP), up from around $50 billion last year.
“The investment will be used to scale up our technology platforms and expand our merchant network and consumer base rapidly. We have been growing at over 100 per cent every two months this year, and this investment will help us maintain the same aggressive growth rate for the next two years,” said Sameer Nigam, co-founder and CEO, PhonePe.
“PhonePe is strongly committed to helping the Indian government in realising its Digital India vision, and achieving its target of 25 billion digital payment transactions by next year,” he added.
PhonePe has reported more than 45 million instalments. It recorded over 16 million transactions due to the Flipkart Big Billion Days festival sale in September.
“Fintech and e-commerce are among the most visible faces of a new Digital India that is powered by the youth and technology, and both are set for outstanding growth,” said Binny Bansal, Group CEO, Flipkart.