Leading digital payments company PhonePe has gotten a further $100 million infusion from its current backer General Atlantic and its affiliate funds as part of its $1 billion initial fundraising. Similar to the earlier tranches, the new tranche was raised at a $12 billion pre-money valuation.

With this, the company that handles digital payments will have raised $750 million in total. As part of the raise, General Atlantic and its associate funds contributed a combined $450 million. In January, the largest global private equity firm General Atlantic invested $350 million in PhonePe's most recent round of investment.

PhonePe stated: "PhonePe confirms a $100 million additional tranche of investment from General Atlantic and its co-investors as part of our ongoing fundraise." The key player in digital payments, which declared a separate from local e-commerce behemoth Flipkart last December, has received investment in four installments.

Prior to this fundraising effort, General Atlantic owned around 2.9% of PhonePe, with Walmart, the parent company of Flipkart, owning roughly 70%. By the time this main raise is over, it is anticipated that the final shareholding structure will be fixed. In March, PhonePe secured $200 million from its majority stakeholder Walmart for its most recent tranche.

The announcement of the fresh funding coincides with PhonePe's debut of its hyperlocal commerce software Pincode on the ONDC (open network for digital commerce) platform, which made its ecommerce ambitions plain. It was considering purchasing ZestMoney in order to enter the buy-now-pay-later (BNPL) market.

Deal negotiations between the two parties, however, failed on March 30 due to due diligence concerns. According to current information, the business intends to develop a BNPL product internally and may recruit some ZestMoney staff members to help develop its consumer credit verticals.