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PhonePe raised $100 million from Ribbit Capital, Tiger Global, and TVS Capital Funds.
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The funding round valued the Walmart Inc-backed company at $12 billion.
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The investment is part of PhonePe's primary fundraise that took place last month.
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General Atlantic also invested $350 million in PhonePe last month.
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PhonePe is already India's most valuable payments firm and among the country's most highly-valued startups.
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The company aims to raise up to $1 billion after shifting its headquarters to India from Singapore.
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PhonePe plans to use the funds to scale up its payments and insurance businesses in India.
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The company also plans to launch new businesses such as lending, stockbroking, and online shopping.
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The relocation to India was to ensure easier entry into the country's highly-regulated financial services industry.
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PhonePe expects to raise the remaining funds from global and Indian investors in due course.