The Walmart-backed company is looking to compete with Google by providing developers with a superior user acquisition experience through multilingual solutions, according to an internal company document analysed by TechCrunch. According to the same source, PhonePe is the most valuable Indian fintech startup that competes with Google’s Play Store. The company plans to improve its relationships with smartphone vendors, including China-based Xiaomi. As for the upcoming app store, it will be available in 12 languages and will feature 24×7 live chat support.
According to an anonymous source, PhonePe has held the belief that consumers are reluctant to download multiple apps on their phones. The company provided a mini app store within its marquee app but is now gearing up to launch a fully-fledged app store that is set to challenge Google’s dominance in the Indian app store market.
PhonePe managed to gather 450 million registered users in the country, and the success of its upcoming app store relies on a more localised strategy, not just from a language point of view but also from a discovery and consumer interest perspective. PhonePe representatives cited by TechCrunch revealed that the timing is favourable for the company, as the Indian antitrust watchdog Competition Commission of India made it clear that Google cannot engage in anti-competitive practices.
In March 2023, PhonePe has secured USD 200 million in primary capital from retail corporation Walmart, at a pre-money valuation of USD 12 billion. The additional funding came as part of the company’s ongoing fundraising of up to USD 1 billion following its relocation to India in December 2022. At the time, PhonePe had raised USD 650 million from a number of global investors. Commenting on the news, Sameer Nigam, CEO and founder of PhonePe showcased appreciation towards Walmart, the company’s majority investor, for their ongoing support of PhonePe’s long-term goals.
In April 2022, PhonePe has secured USD 100 million of additional funding from returning backer General Atlantic. The new funds will be used to develop and scale new financial services businesses including insurance, wealth management, stock trading, lending, and account aggregation. These recent investments value the company at USD 12 billion, making it one of India's most valuable fintech startups.
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