PhonePe raises $700M in Flipkart split - Mobile World Live

PhonePe raises $700M in Flipkart split

03 DEC 2020

Online retailer Flipkart Group spun off part of its digital payment arm PhonePe, clearing the unit to raise $700 million to fund fresh developments from a group of existing investors led by US retail giant Walmart.

In addition to allowing it to tap third-party capital, Flipkart explained the move values PhonePe at $5.5 billion, and enables the unit to create its own board of directors focused on its development and offer employees new stock benefits.

Flipkart retains a majority stake of around 87 per cent in PhonePe: it said the companies will continue to work closely together.

Sameer Nigam, PhonePe founder and CEO, said the move provided it with the “dedicated long-term capital” required to achieve a goal of  “providing financial inclusion to a billion Indians”.

In October, PhonePe staked a claim as the top mobile payments provider in India, stating it handled a record 925 million transactions for its more than 250 million registered users.

It faces competition from WhatsApp, which launched a payments service in the country in November, and Google Pay, currently in second place by transaction volume.



Diana Goovaerts

Diana is Mobile World Live's US Editor, reporting on infrastructure and spectrum rollouts, regulatory issues, and other carrier news from the US market. Diana came to GSMA from her former role as Editor of Wireless Week and CED Magazine, digital-only...

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