UPI-based digital payments solution PhonePe has just received close to $39 million from parent Flipkart, its filings with the Ministry of Corporate Affairs revealed. PhonePe is said to be utilizing the funds in expanding its team, and ramping up marketing efforts in a bid to outdo rival peer-to-peer payments services in the country. The development, first spotted by VCCircle, comes shortly after reports emerged that Amazon too was bumping up its investments in Amazon Pay India. Also Read - iPhone SE gets cheaper on Flipkart only for today: Get over Rs 11,000 flat discountAlso Read - Amazon Prime Day sale: Best deals on headphones, speakers, powerbanks under Rs 1000
PhonePe now accounts for the highest share (45 percent) of UPI transactions in the country, it announced in August. It clocks 10 million transactions in a month, and has witnessed an unprecedented growth of 800 percent since demonetization in November 2016. “We have only seen an acceleration in value and volume of transactions post demonetization. We hit a $2.5 billion total payment volume annual run rate in July. This was the fastest ramp up seen in India s digital payments market till date,” PhonePe founder and CEO Sameer Nigam told BGR India in a recent interview. ALSO READ: We have seen 100 percent month-over-month growth post demonetization: PhonePe CEO Also Read - iPhone 12 for iPhone 11 launch price at Flipkart Big Saving Days sale, iPhone 12 Mini alse sees discount
The service which was acquired by Flipkart in April 2016 has also extended its offline merchant network, especially in the last nine months, riding on the ‘cashless economy’ wave sweeping the nation. At present, over 25,000 offline merchants accept PhonePe payments. While peer-to-peer payments and bill recharges generate maximum volumes on PhonePe, the service also intends to get into the selling of financial products, and wealth management in the near future. PhonePe rival Paytm ventured into the NBFC space with Paytm Payments Bank earlier this year. ALSO READ: Amazon may be making big investments in Amazon Pay in India: Report
Flipkart rival Amazon India, meanwhile, is pumping in $245 million in its payments division in India. After being available as a payment option for Amazon-only purchases for a while, Amazon Pay extended to other third-party services like dining out, movie and travel ticketing, bus rides and so on, a few months ago. Both Amazon and Flipkart are incentivising users who use Amazon Pay and PhonePe respectively while shopping, especially during festive sales. PhonePe is also looking to add a fresh set of features once UPI 2.0 rolls out.