Retail behemoth Walmarts shareholding in fintech company PhonePe has dropped from 89 percent to 85 percent amid the latters fundraise of $1 billion, media reports said.
As of the end of May, PhonePe has accumulated a total of USD 850 million in primary capital during the current funding round.
During the three months ended April 30, 2023, the company received USD 0.5 billion related to new rounds of equity funding for the companys majority-owned PhonePe subsidiary, which reduced the companys ownership from approximately 89 percent as of January 31, 2023, to approximately 85 percent, Walmart said in a latest regulatory filing.
By April 30, PhonePe, a subsidiary of the Walmart group, had raised a total of USD 750 million, which includes a capital infusion of USD 200 million from Walmart.
During the ongoing funding round of PhonePe, General Atlantic and its co-investors have contributed USD 550 million at a pre-money valuation of USD 12 billion. Additionally, Ribbit Capital, Tiger Global, and TVS Capital Funds have invested USD 100 million in the company.
Pre-money valuation refers to the estimated value of a company or startup, based on its current assets, performance, market potential, and other factors before it receives any external funding or investments.
Pre-money valuation is typically used as a reference point for determining the ownership stake that investors will receive in exchange for their investment.
