Digital payments and financial services unicorn PhonePe have raised another $200 million in an ongoing $1 billion funding round from its largest shareholder, Walmart, at a pre-money valuation of $12 billion.

In January of this year, PhonePe announced that it had raised $1 billion in tranches at a valuation of $12 billion. Since then, the fintech unicorn has raised $350 million from General Atlantic and $100 million from Tiger Global Management, Ribbit Capital and TVS Capital. The company said in a statement on March 17 that it expected to announce further investments in due course.

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

The company plans to deploy the funds to expand its payments and insurance businesses in India and launch and aggressively scale new businesses such as lending, stockbroking, ONDC (Open Network for Digital Commerce)-based shopping and account aggregators in the coming years.

PhonePe entered the lending business when the Reserve Bank of India (RBI) and the Ministry of Electronics and Information Technology (MeiTY) cracked down on digital lending apps.

Founded in 2015 by former Flipkart executives Nigam, Rahul Chari and Burzin Engineer, the fintech company has over 400 million registered users. It is the market leader in Unified Payments Interface (UPI) transactions. The company has a 47% market share in monthly UPI volume.

In 2017, the company expanded into financial services, allowing customers to buy gold, insurance, mutual funds, pay bills and utilities on its platform.

Last year, PhonePe successively acquired GigIndia, WealthDesk, OpenQ and completed the long-awaited acquisition of IndusOS.

PhonePe’s fundraising comes as its closest rival, Paytm, has fallen by more than 50% in valuation since it went public in November 2021, prompting public shareholders to question its ability to achieve company-level profitability. As of Mach 17, Paytm’s total market capitalisation is just over $4.7 billion.