Bengaluru : India’s largest e-commerce marketplace Flipkart has announced an investment commitment of $500 million for its group company PhonePe. One of the largest ever single investment commitments in the Indian FinTech-payments space, Flipkart has shown its keen interest in rapidly scaling up the technology, reach, and offerings of PhonePe.
However, this commitment adds to the $75 million funds infusion which Flipkart has already made in PhonePe since acquiring it in 2015. The FinTech ecosystem in India, especially payments, is undergoing a paradigm shift with the surge in mobile internet usage, and as vast swathes of people embrace its ease and convenience. Accordingly, market research shows India’s digital payments sector is estimated to grow to $500 billion by 2020 representing around 15 percent of GDP, up from around $50 billion last year. PhonePe is a critical part of our overall strategy, Flipkart said.