PhonePe, a digital payments platform owned by Flipkart and situated in Singapore, has received a fresh capital infusion from its Singapore-based parent of around $ 90 Million, even though it reported a greater consolidated deficit for the 2021-22 financial year.
The company's board of directors issued a resolution on November 15 to allocate 371,753 equity shares to PhonePe Pvt. Ltd, Singapore, on a rights basis.
This resolution was included in a regulatory filing. Each of the shares was valued at Rs. 19,968 INR. This is the second significant capital raise that the company completed with its parent corporation so far in 2018.
The financial technology firm voted in favor of two resolutions in March to allocate 25 lakhs equity shares to PhonePe Singapore, to raise $297 million. After that, the equity shares were valued at Rs 8,901 each, which included a securities premium of Rs 8,891.
PhonePe Financials of FY 2022
PhonePe recorded revenue from operations of Rs 1,640 crore in a separate filing on Tuesday.
This figure represents an increase from the Rs 690 crore reported for the previous fiscal year. The company's overall operating expenses rose to Rs. 1,683.37 crores from Rs. 7,25.33 crore, which was the primary contributor to the increase in the net loss to Rs. 1,775.78 crores from Rs. 1,730.57 crores the previous year.
On a standalone basis, the amount spent on marketing increased from 535 crores to 670 crores over the same period.
PhonePe on an Acquisition Spree
PhonePe has accomplished much this year, including relocating its headquarters from Singapore to India in September. This was done in preparation for the company's eventual intention to go public. All the businesses and enterprises that are part of the PhonePe Group are now completely owned by PhonePe Pvt Ltd, India, and have been consolidated under this company.
The company has been looking into large acquisitions to strengthen its financial and technological platform play, sometimes known as its "super app" intentions. This year, the Bengaluru-based company reached its all-cash purchase of Indus OS, a domestic app and content discovery platform.
Additionally, this year, the company acquired three other ventures, including investment company WealthDesk, financial advisory platform OpenQfor a consolidated $75 million, and a Pune-based storefront for gig workers GigIndia.
PhonePe has big plans to integrate tens of thousands, if not hundreds of thousands, of Indian apps like Indus App Bazaar into its PhonePe Switch platform, which now has some tiny apps built in.
Since it began offering financial services in 2017, the app has expanded its scope to include various products and services.
It has also applied for licenses to operate as a mutual fund and a payment aggregator. Moneycontrol published an article in September stating that the company was exploring the possibility of launching its payment gateway as an expansion to its existing QR code-based UPI payment service and its in-app payment system.