BENGALURU, March 17 Reuters Indian digital payments firm PhonePe said on Friday it has raised 200 million from majority backer Walmart Inc at a premoney valuation of 12 billion.

PhonePe, already India39;s most valuable payments firm and among the country39;s most highlyvalued startups, said the investment is part of its ongoing fundraise of up to 1 billion.

It has raised 350 million from private equity firm General Atlantic and 100 million from Ribbit Capital, Tiger Global and TVS Capital Funds in the past two months, at the same 12 billion valuation.

American retail behemoth Walmart, which acquired a majority share in PhonePe in 2018, will continue as a majority investor, the Indian company said, without disclosing its stake.

Despite a funding winter, the Indian digital payments space has been a bright spot due to the popularity of online payments and startups39; ambitions to branch into the lucrative financial services space.

PhonePe said it plans to deploy these funds to build and scale new businesses including insurance, wealth management and lending.

PhonePe separated from Indian ecommerce giant Flipkart late last year, when it also shifted its registered headquarters from Singapore to India, with Walmart picking up the nearly 1 billion tax bill for the move.

The relocation, according to some reports, was to ensure an easier entry into the country39;s highlyregulated financial services industry, especially lending.

Reporting by Meenakshi Maidas in Bengaluru;…