PhonePe has received $200 million from Walmart, valuing the company at $12 billion. The investment is part of the fintech company's larger ongoing funding round, which aims to raise up to $1 billion. PhonePe has already added $650 million to its cart with the new round of funding.

In January, the company began the funding round with a $350 million investment from General Atlantic. Last month, Ribbit Capital, TVS Capital Funds, and Tiger Global each contributed $100 million.

A portion of the funds will be set aside for new business segments such as insurance, wealth management, lending, stockbroking, and ONDC-based shopping. Furthermore, a portion of the funds will be used to expand its UPI footprint. "The funding will also enable PhonePe to accelerate the next wave of growth for UPI payments in India, including UPI lite and Credit on UPI," the company said in a statement.

Led by founder and CEO Sameer Nigam, PhonePe is today India’s most valued privately held fintech startup. “We are excited about the next phase of our growth as we build new offerings for Indian consumers and merchants, along with enabling financial inclusion across the nation,” Nigam said. The company is one of the few startups which have been able to find investor favour amid a global tech downturn.