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Flipkart and digital payments platform PhonePe have now been established as separate entities, following the partial separation announced in December 2020.
With this change, PhonePe becomes a fully Indian company. It was previously owned and operated by a Singapore entity.
Existing Flipkart Singapore and PhonePe Singapore shareholders, led by Walmart, have purchased shares in PhonePe India directly, according to a press release from Flipkart. It was also stated that Walmart will continue to be the majority shareholder in both business groups. Temasek, Tiger Global, and Tencent are among its other investors.
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“Flipkart and PhonePe are proud, homegrown Indian brands with a user base upwards of 400 million each. We are looking forward to the next phase of our growth as we invest in new businesses –like insurance, wealth management and lending, while also enabling the next wave of growth for UPI payments in India. This will help propel our vision to provide billions of Indians with financial inclusion,” said Sameer Nigam, founder and chief executive at PhonePe.
“We are confident PhonePe will continue to scale and achieve its vision of providing financial inclusion to millions of Indians. Flipkart stays committed to its purpose to empower every Indian’s dream by delivering value through innovation in technology and commerce while helping small businesses connect to pan-India markets,” said Kalyan Krishnamurthy, chief executive of Flipkart Group.
Meanwhile, PhonePe is attempting to raise up to $1 billion from General Atlantic and existing investors such as Tiger Global Management, Qatar Investment Authority, and Microsoft Corp. at a valuation of around $13 billion, according to Bloomberg.