PhonePe Group, which recently received the NBFC-AA license from the Reserve Bank of India (RBI), has announced the launch of its account aggregator services via its wholly-owned subsidiary PhonePe Technology Services.
The account aggregator service will allow users to share financial data, such as bank statements, insurance policies and tax filings with regulated financial institutions for several use cases like applying for loans, buying new insurance, getting investment advice, etc.
Consumers can request, pause or revoke any ongoing data consent directly from PhonePe.
PhonePe has integrated with multiple financial information providers such as YES Bank, Federal Bank, AU Small Finance Bank, etc. Several others, including large banks, are likely to get integrated before the end of June.
PhonePe has also launched its product suite and application programming interface for the financial institutions market, and is in the process of integrating with regulated FIUs so they can start taking consent from users to do a real-time data fetch from the users’ FIPs.
Rahul Chari, co-founder and CTO, PhonePe said the launch of the account aggregator service puts PhonePe at the forefront of building digital public infrastructure. “This will also empower users to access and control their own financial data, revolutionising the way they engage with financial services.”
PhonePe had forayed into financial services in 2017, and has introduced several mutual funds and insurance products. For its account aggregator business, PhonePe’s wholly-owned subsidiary PhonePe Technology Services was issued a valid certificate of registration by the Reserve Bank of India on August 26, 2021.
As per PhonePe, this investment “reaffirms” General Atlantic’s conviction in PhonePe’s business and growth potential. With the latest primary infusion from General Atlantic, PhonePe has now raised a total of $850 million of primary capital in the current round.
According to PhonePe, it aims to raise up to $1 billion in capital after its domicile shift to India last year. The current fundraising comes two months after PhonePe had raised an additional $200 million in primary capital from its parent company Walmart at a pre-money valuation of $12 billion. Before that in February, PhonePe raised $100 million in primary capital from Ribbit Capital, Tiger Global, and TVS Capital Funds, at a pre-money valuation of $12 billion.
PhonePe claims to have around 46 crore registered users, which spans 99% of pin codes in the country.