PhonePe bags $38.7 mn from Flipkart to ward off threat from Google's Tez

Firm claims it has the largest UPI app for merchants in India catering to over 25,000 users

Flipkart has made fresh investments of $38.7 million (around Rs 250 crore) in its digital payments unit PhonePe to scale its marketing efforts to reach more merchants and customers at a time when competition in the space has heated up with the entry of global technology giant Google.

PhonePe claims it is the largest unified payments interface (UPI) app for merchants in the country with over 25,000 offline merchants accepting payments through its platform. Nearly half of all UPI transactions in August were through the app, claimed the company, even as it looks to expand its user base and merchant