PhonePe

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PhonePe
Company typePublic
IndustryFintech
FoundedDecember 2015; 9 years ago (2015-12)
FounderSameer Nigam, Rahul Chari, Burzin Engineer
HeadquartersBengaluru, Karnataka, India
Key people
Sameer Nigam (CEO)
Rahul Chari (CTO)
Burzin Engineer (CRO)
ServicesDigital payments, financial services, stock broking, app store
Revenue₹5,064 crore (FY24)
OwnerFlipkart (majority), Walmart
Number of employees
910 (January 2025)
Websitewww.phonepe.com

PhonePe is an Indian financial technology company headquartered in Bengaluru, Karnataka, founded in December 2015 by Sameer Nigam, Rahul Chari, and Burzin Engineer. Built on the Unified Payments Interface (UPI), the PhonePe app, launched in August 2016, supports over 11 Indian languages and facilitates transactions such as money transfers, bill payments, mobile recharges, and in-store payments. Initially acquired by Flipkart in 2016, PhonePe partially split in 2020, with Walmart retaining majority ownership. The company has expanded into financial services, including insurance, lending, and stock broking, and launched the Indus Appstore in 2024. With over 550 million registered users and 40 million merchants as of 2024, PhonePe holds a 50.2% UPI market share, making it a leader in India's digital payments ecosystem.[1][2]

Founders & Leadership

PhonePe was founded by three individuals with extensive experience in technology and fintech:

  • Sameer Nigam (CEO): Nigam, born in Delhi, holds a Bachelor’s degree in Computer Engineering from the University of Mumbai and a Master’s in Computer Engineering from the University of Arizona. He completed an MBA at The Wharton School, University of Pennsylvania. Prior to PhonePe, Nigam founded Mime360, a digital media distribution platform, acquired by Flipkart in 2011, where he served as SVP of Engineering and VP of Marketing. He was listed among India’s top business leaders under 40 by The Economic Times.[3]
  • Rahul Chari (CTO): Chari holds a Bachelor’s degree in Computer Engineering from the University of Mumbai (Gold Medalist) and a Master’s in Computer Science from Purdue University. With prior experience at Flipkart, he has expertise in building scalable technology platforms, overseeing PhonePe’s UPI infrastructure and technical operations.[4]
  • Burzin Engineer (CRO): Engineer holds a Master’s in Computer Science from the University of Southern California. With over 25 years in the IT industry, he previously served as Director of Engineering at Flipkart. As Chief Reliability Officer, he manages PhonePe’s web infrastructure, cloud systems, and network reliability.[5]

Timeline

Year Milestone
2015 PhonePe founded by Sameer Nigam, Rahul Chari, and Burzin Engineer in December.[6]
2016 Acquired by Flipkart; FxMart license rebranded as PhonePe wallet. UPI-based app launched in August with Yes Bank partnership.[7]
2017 Faced transaction blocks by ICICI Bank and Airtel for non-compliance with NPCI guidelines; issues resolved by February.[8]
2018 Launched mutual fund offerings. Won UPI Digital Innovation Award from NPCI and India Advertising Awards in Telecom and Technology.[9]
2020 Partial split from Flipkart; Walmart retains majority stake.[10]
2022 Obtained RBI license for semi-closed prepaid payment system. Launched international UPI payments for Indian users abroad.[11]
2023 Launched Pincode (hyperlocal e-commerce) and Share.Market (stock broking). Raised $850 million in funding.[12]
2024 Launched Indus Appstore, surpassing one million downloads in a month. Revenue reached ₹5,064 crore.[13][14]
2025 Converted to public company (PhonePe Limited) in April, preparing for IPO.[15]

Funding

Date Round Amount Investors
February 2020 Private Equity ₹427.25 crore ($59.6 million) PhonePe Private Limited (Singapore)[16]
January 2023 Private Equity $350 million General Atlantic[17]
February 2023 Private Equity $100 million Ribbit Capital, Tiger Global, TVS Capital Funds[18]
March 2023 Private Equity $200 million Walmart[19]
May 2023 Private Equity $100 million General Atlantic[20]

Total funding: $2.6 billion as of November 2023.[21]

Business Model

PhonePe operates a multi-faceted business model centered on UPI transactions, targeting both consumers (B2C) and businesses (B2B) in India’s fintech market. Its revenue streams include:

  • Transaction Fees: Charges on peer-to-peer transfers and digital wallet withdrawals.
  • Merchant Services: Fees from over 40 million merchants using PhonePe’s POS systems and payment gateways.
  • Insurance and Financial Services: Commissions from insurance sales, mutual funds, and lending products.
  • Advertising and Data Analytics: Targeted advertising and insights from user data for partner merchants.
  • Affiliate Commissions: Earnings from partnerships with e-commerce platforms like Flipkart and Myntra.
  • PhonePe Switch: Revenue from facilitating access to third-party apps (e.g., Ola, Swiggy) within its platform.

PhonePe’s strategy focuses on convenience, scalability, and diversification, leveraging its UPI dominance to cross-sell financial products and expand into rural markets.[22]

Products / Services

PhonePe offers a range of digital payment and financial services:

  • UPI Payments: Facilitates instant money transfers using mobile numbers or VPAs across 40+ banks.[23]
  • PhonePe Wallet: A semi-closed prepaid system for refunds, cashback, and quick payments.[24]
  • Bill Payments and Recharges: Supports utility bills, mobile, DTH, and broadband recharges.[25]
  • Merchant Solutions: POS devices and payment gateways for offline and online merchants.[26]
  • Financial Services: Mutual funds, insurance (e.g., health, travel), digital gold, and lending for SMEs.[27]
  • Share.Market: A(stock broking and mutual fund investment platform launched in August 2023.[28]
  • Pincode: A hyperlocal e-commerce app built on the ONDC platform, launched in April 2023.[29]
  • Indus Appstore: A mobile app store launched in February 2024, offering over 200,000 apps.[30]

Growth & Metrics

As of 2024, PhonePe has:

  • User Base: Over 550 million registered users, with 45% from Tier 2 and 3 cities.[31]
  • Merchants: 40 million offline and online merchants across 99% of India’s postal codes.[32]
  • Market Share: 50.2% of UPI transactions by volume as of 2023.[33]
  • Revenue: ₹5,064 crore in FY24, a 73% increase from FY23’s ₹2,914 crore.[34]
  • Team Size: 910 employees as of January 2025, a 42% increase from January 2024.[35]
  • Transaction Volume: Processes over 270 million daily transactions.[36]

Legal Entity Information

  • Legal Name: PhonePe Limited
  • Foundation Date: December 2015
  • Registrar of Companies (ROC): ROC Bangalore
  • Corporate Identification Number (CIN): U72200KA2015PLC084212
  • Registered Address: Salarpuria Softzone, Wing A, Bellandur, Bengaluru, Karnataka, India
  • Company Status: Active[37][38]

Media & Public Recognition

PhonePe has received several accolades:

  • 2018: UPI Digital Innovation Award from NPCI.[39]
  • 2018: India Advertising Awards in the Telecom and Technology category.[40]
  • 2023: Recognized in The Economic Times for its contribution to India’s digital payments ecosystem.[41]
  • Featured in Harvard Business Review case studies for its role in financial inclusion and digital transformation.[42]

FAQs

What is PhonePe?
PhonePe is an Indian financial technology company offering UPI-based digital payments, financial services, and merchant solutions, founded in 2015.[43]
Who founded PhonePe?
PhonePe was founded by Sameer Nigam, Rahul Chari, and Burzin Engineer in December 2015.[44]
What is PhonePe’s market share in UPI?
PhonePe holds a 50.2% market share in UPI transactions by volume as of 2023.[45]
What services does PhonePe offer?
PhonePe provides UPI payments, bill payments, recharges, insurance, lending, stock broking (Share.Market), hyperlocal e-commerce (Pincode), and an app store (Indus Appstore).[46]
Is PhonePe planning an IPO?
PhonePe converted to a public company in April 2025 and is preparing for an IPO, targeting a $15 billion valuation.[47]

External Links

Related Startups

References

  1. ↑ "PhonePe's Competitors, Revenue, Number of Employees, Funding, Acquisitions & News". Owler. Retrieved 20 May 2025.
  2. ↑ "PhonePe raises another $100 million in funding at $12 billion valuation". The Economic Times. 14 February 2023. Retrieved 20 May 2025.
  3. ↑ "Sameer Nigam Biography: Founder of PhonePe". StartupTalky. Retrieved 20 May 2025.
  4. ↑ "PhonePe - Our Journey". PhonePe. Retrieved 20 May 2025.
  5. ↑ "PhonePe Success Story". StartupTalky. Retrieved 20 May 2025.
  6. ↑ "PhonePe Success Story". StartupTalky. Retrieved 20 May 2025.
  7. ↑ "Flipkart's PhonePe launches UPI-based app". The Economic Times. 18 August 2016. Retrieved 20 May 2025.
  8. ↑ "NPCI reverses order, says PhonePe's UPI app violates guidelines". The Economic Times. 19 January 2017. Retrieved 20 May 2025.
  9. ↑ "PhonePe Success Story". StartupTalky. Retrieved 20 May 2025.
  10. ↑ "PhonePe spins off from Flipkart, raises $700M at $5.5B valuation". TechCrunch. 3 December 2020. Retrieved 20 May 2025.
  11. ↑ "PhonePe enables UPI payments for Indian users abroad". Business Standard. 2 February 2022. Retrieved 20 May 2025.
  12. ↑ "PhonePe raises $850M in 2023, valuation hits $12B". Livemint. 17 May 2023. Retrieved 20 May 2025.
  13. ↑ "PhonePe's Indus Appstore crosses 1M downloads in a month". Moneycontrol. 15 March 2024. Retrieved 20 May 2025.
  14. ↑ "PhonePe's Competitors, Revenue, Number of Employees, Funding, Acquisitions & News". Owler. Retrieved 20 May 2025.
  15. ↑ "PhonePe designates top officials as key management personnel after turning into public company". Moneycontrol. 20 May 2025. Retrieved 20 May 2025.
  16. ↑ "PhonePe Gets $59.6 Mn In Funding From Singapore-Based Parent Entity". Inc42. 26 February 2020. Retrieved 20 May 2025.
  17. ↑ "PhonePe raises $350M from General Atlantic at $12B valuation". TechCrunch. 19 January 2023. Retrieved 20 May 2025.
  18. ↑ "PhonePe raises another $100 million in funding at $12 billion valuation". The Economic Times. 14 February 2023. Retrieved 20 May 2025.
  19. ↑ "Walmart invests $200M in PhonePe at $12B valuation". Livemint. 31 March 2023. Retrieved 20 May 2025.
  20. ↑ "PhonePe secures additional $100M from General Atlantic". Business Standard. 17 May 2023. Retrieved 20 May 2025.
  21. ↑ "Report: PhonePe's Business Breakdown & Founding Story". Contrary Research. 30 November 2023. Retrieved 20 May 2025.
  22. ↑ "PhonePe Business Model: How India's Leading Fintech Drives Growth in 2024". Karo Startup. 29 September 2024. Retrieved 20 May 2025.
  23. ↑ "PhonePe Success Story". StartupTalky. Retrieved 20 May 2025.
  24. ↑ "PhonePe - Our Journey". PhonePe. Retrieved 20 May 2025.
  25. ↑ "PhonePe Success Story". StartupTalky. Retrieved 20 May 2025.
  26. ↑ "PhonePe Success Story". StartupTalky. Retrieved 20 May 2025.
  27. ↑ "PhonePe Company Profile Funding & Investors". YourStory. Retrieved 20 May 2025.
  28. ↑ "PhonePe launches Share.Market to enter wealth management". Moneycontrol. 30 August 2023. Retrieved 20 May 2025.
  29. ↑ "PhonePe launches Pincode for hyperlocal commerce". Livemint. 4 April 2023. Retrieved 20 May 2025.
  30. ↑ "PhonePe's Indus Appstore crosses 1M downloads in a month". Moneycontrol. 15 March 2024. Retrieved 20 May 2025.
  31. ↑ "PhonePe". LinkedIn. Retrieved 20 May 2025.
  32. ↑ "PhonePe". LinkedIn. Retrieved 20 May 2025.
  33. ↑ "PhonePe raises another $100 million in funding at $12 billion valuation". The Economic Times. 14 February 2023. Retrieved 20 May 2025.
  34. ↑ "PhonePe's Competitors, Revenue, Number of Employees, Funding, Acquisitions & News". Owler. Retrieved 20 May 2025.
  35. ↑ "PhonePe - 2025 Company Profile, Funding, Competitors & Financials". Tracxn. Retrieved 20 May 2025.
  36. ↑ "PhonePe Business Model: How India's Leading Fintech Drives Growth in 2024". Karo Startup. 29 September 2024. Retrieved 20 May 2025.
  37. ↑ "PhonePe designates top officials as key management personnel after turning into public company". Moneycontrol. 20 May 2025. Retrieved 20 May 2025.
  38. ↑ "PhonePe Company Profile Funding & Investors". YourStory. Retrieved 20 May 2025.
  39. ↑ "PhonePe Success Story". StartupTalky. Retrieved 20 May 2025.
  40. ↑ "PhonePe Success Story". StartupTalky. Retrieved 20 May 2025.
  41. ↑ "PhonePe is made in India and will list in India, says CEO Sameer Nigam". Moneycontrol. 6 June 2022. Retrieved 20 May 2025.
  42. ↑ "PhonePe". LinkedIn. Retrieved 20 May 2025.
  43. ↑ "PhonePe - Our Journey". PhonePe. Retrieved 20 May 2025.
  44. ↑ "PhonePe Success Story". StartupTalky. Retrieved 20 May 2025.
  45. ↑ "PhonePe raises another $100 million in funding at $12 billion valuation". The Economic Times. 14 February 2023. Retrieved 20 May 2025.
  46. ↑ "PhonePe's Indus Appstore crosses 1M downloads in a month". Moneycontrol. 15 March 2024. Retrieved 20 May 2025.
  47. ↑ "PhonePe designates top officials as key management personnel after turning into public company". Moneycontrol. 20 May 2025. Retrieved 20 May 2025.
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