Unicorn in payments and financial services PhonePe has raised $350 million from General Atlantic in a new investment round at a valuation of over $12 billion, making it the most highly valued fintech company in India.

The company will raise up to $1 billion in tranches during the current round, according to a January 19 announcement.

PhonePe’s fundraising follows the December announcement of the company’s spin-off from e-commerce firm Flipkart. The Flipkart spin-off also concludes PhonePe’s 2022-begun transition to a wholly Indian-based corporation.

Joining the ranks of Flipkart, which was acquired by Walmart, Paytm, which went public last year, Byju’s, and Swiggy, PhonePe is now a decacorn, or a company with a valuation of more than $10 billion. PhonePe’s valuation has also eclipsed that of Razorpay, a digital payments and neobanking startup that was valued at approximately $7.5 billion at its most recent valuation.

In the middle of a startup funding winter in which investors are writing smaller checks as the macroeconomic situation deteriorates, this is a rare instance of a late-stage fundraising round. When PhonePe was spun out from Flipkart as a distinct firm, it was valued at $5.5 billion. At the time, Flipkart had invested $70 million million.

PhonePe’s financing comes at a time when its closest competitor, Paytm, has seen its valuation decrease by more than 60 percent since it went public in November of last year, with public shareholders questioning the company’s capacity to reach company-level profitability. Paytm’s overall market capitalization was just over $4.3 billion as of January 19.

However, Paytm’s revenue is far greater than PhonePe’s. Paytm earned revenue of Rs 3,892.40 billion in FY22, whereas PhonePe had revenue of Rs 1,646 billion. In addition, PhonePe recorded a loss of Rs 2,014 crore in FY22 (2021-22), an increase from Rs 1,730 crore in FY21 (2020-21). In FY22, Paytm recorded a net loss of Rs 2,325 crore, an increase from Rs 1,550 crore in FY21.