Digital payments and financial services startup PhonePe have raised another $100 million from General Atlantic and its co-investors at a pre-money valuation of $12 billion in its ongoing $1 billion fundraising drive, people familiar with the matter told Moneycontrol.

In January of this year, PhonePe announced that it had raised $1 billion in tranches at a valuation of $12 billion. Since then, PhonePe has raised $350 million from General Atlantic, $100 million from Tiger Global Management, Ribbit Capital and TVS Capital, and $200 million from its largest shareholder, Walmart. PhonePe confirmed the development.

PhonePe’s funding comes after the company announced in December that it was demerged from e-commerce giant Flipkart. The Flipkart demerger also completes PhonePe’s transition to a fully Indian-domiciled company in 2022.

In previous statements, the company said that it seeks to use the funds to expand its payments and insurance business in India and to launch and aggressively scale new businesses such as lending, stock broking, ONDC (Open Network for Digital Commerce) based shopping, and account aggregators for the next few years.

Earlier this month, it officially launched Pincode, a new consumer-facing app that will become part of the ONDC framework to strengthen its e-commerce business. In an interview with Moneycontrol, the company’s co-founder and CEO, Sameer Nigam, also said it has started piloting digital lending for merchants and will launch it soon.

PhonePe’s fundraising comes as the valuation of its closest rival, Paytm, has fallen more than 50% since its debut in November 2021, prompting public shareholders to question its ability to achieve corporate-level profitability. As of April 12, Paytm’s total market capitalisation was just over $5.2 billion.