PhonePe invested Rs 800 crore in insurance, boosting business growth.

April 30, 2024
1 min read

TLDR:

  • PhonePe has invested over Rs 800 crore in its insurance, wealth management, and ecommerce subsidiaries in the last year.
  • PhonePe poured Rs 426 crore into its insurance unit, demonstrating a focus on building a large retail distribution business.

PhonePe Pours Investments into Insurance Business

PhonePe, owned by Walmart, has invested heavily in its subsidiaries, with a significant portion going towards its insurance business. The company has infused over Rs 1,000 crore in equity investment in its insurance unit since it was licensed. In the past year, PhonePe has invested Rs 426 crore in its insurance brokerage services, Rs 287 crore in its wealth broking subsidiary, and Rs 90 crore in its ecommerce app Pincode. While PhonePe Insurance has seen growth in sales volume, industry executives note that more efforts are needed to increase revenue streams through the sale of life and health insurance products.

The company has also raised funds from marquee investors to fuel its new ventures. PhonePe has appointed new business heads to lead its various verticals, including insurance, ecommerce, and lending. The company’s hyperlocal ecommerce platform, built on the Open Network for Digital Commerce (ONDC), aims to establish and monetize a base of merchants through its Pincode app.

PhonePe’s focus on insurance and new business ventures comes as part of its larger strategy to expand its offerings beyond digital payments. With a growing user base and investments in key sectors, PhonePe is positioning itself for further growth and market expansion.

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