Walmart’s Flipkart to spin off digital payments business

Walmart’s Flipkart to spin off digital payments business

Walmart's Flipkart to spin off digital payments business

Walmart's Flipkart to spin off digital payments business

Walmart's Flipkart to spin off digital payments business

Flipkart will continue to be PhonePe's majority shareholder. (Reuters)

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Walmart's Flipkart to spin off digital payments business

Flipkart will continue to be PhonePe's majority shareholder

India's digital payments market expected to more than double in size to $135 billion in 2023

Updated 03 December 2020

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NEW DELHI: Walmart-controlled Indian e-commerce firm Flipkart said on Thursday it was partially spinning off PhonePe to widen the digital payments platform's access to capital to fuel its growth.

PhonePe, which competes with Alibaba-backed home-grown payments pioneer Paytm and Google Pay, will raise $700 million in primary capital, Bengaluru-based Flipkart said in a statement.

The money will be raised from existing Flipkart investors led by Walmart, giving PhonePe a valuation of $5.5 billion including the fundraising, the statement said.

Flipkart will continue to be PhonePe's majority shareholder, it added.

"We are really excited to have access to dedicated long-term capital to further our ambitions in the financial services distribution sector as well as creating large innovative growth platforms for India's micro, small and medium enterprises,“ PhonePe CEO Sameer Nigam said.

PhonePe is eyeing profitability by 2022 and a public listing the following