PhonePe, a digital payments company based in Singapore, has received a financial infusion of $ 66.5 million (about Rs 492 crore), which includes an investment from Chinese business Tencent. Tencent has invested $ 50 million in the company, and Tiger Global has invested $16.5 million, according to a regulatory filing in Singapore.

PhonePe is raising $700 million in primary capital from current Flipkart investors lead by Walmart in this round, valuing the company at $5.5 billion post-money. Flipkart, the company's parent company, made the news in December 2020. PhonePe, which now only operates in India, plans to utilise the funds to facilitate business transactions in Singapore, including the acquisition of stakes in Singapore-registered companies.

According to a person familiar with the situation at PhonePe, the funds received from Tencent will not be moved to India because to constraints imposed under Press Note 3, which requires that investments made by organisations situated in countries that share a land border with India be scrutinised.

The corporation is in talks to buy a stake in Indus OS, a Singapore-based startup that operates in India. According to the source, the corporation will seek the appropriate authorities whenever necessary to ensure compliance with Indian regulations.

The shares were allotted to Tencent prior to the release of Press Note 3 in April 2020, according to the source, but the investment has now occurred. With an 87.30 percent ownership, Flipkart remains the company's largest shareholder, followed by parent corporation Walmart. Tencent owns less than 2% of the company.