Flipkart’s PhonePe Raises $700 million: Becomes Separate Entity
According report, PhonePe (Owned by Walmart-backed Flipkart) is partially spinning Off into a separate unit. CEO of PhonePe, “Sameer Nigam” stated that this partial spin Off will give the digital payments business access to dedicated long-term capital and aimed that providing financial inclusion to billion Indians.
The company also explained that PhonePe with following spin-off will increase $700 million in primary capital. This fund will be raised at post-money valuation of $5.5 billion from existing Flipkart investors led by Walmart Company.
After the spin-off, Flipkart ownership with PhonePe will be reduced, but it will still remain the majority “Shareholder”. For those who are not aware, PhonePe is India largest digital payment platform and has larger share in India digital payments market as compared to “WhatsApp Pay”, “Amazon Pay”, “Alibaba-backed Paytm”, “Google Pay” and “Softbank”. PhonePe- leading digital payment platform in India with over 100M monthly active users. Let’s take have a look at “Sameer Nigram” –CEO of PhonePe statements on the matter.
“This partial spin-off gives PhonePe access to dedicated long-term capital to pursue our vision of providing financial inclusion to a billion Indians”
In the Official press release, PhonePe’s CEO states that the fund infusion value after spin-off at $5.5 billion while Flipkart is remain active majority shareholder but reduced to 87% from 100% shareholder partner.
PhonePe Company is also working on development of “Employee Stock Option Plan (ESOP)” for its employees and this move will the PhonePe to maximize the value creation for Flipkart and their shareholders. Let’s take have a look at statement of “Kalyan Krishanmurthy” – CEO of Flipkart Group.
“This move will help PhonePe maximize its potential as it moves to the next phase of its development, and it will also maximize value creation for Flipkart and our shareholders”
PhonePe Company has recently launched “The PharmEasy” feature that allowing PhonePe users to order medicines online using this digital payment platform. That’s all. For any suggestions or queries, please write on comment box below.