Walmart Inc-controlled Indian e-commerce firm Flipkart said on Thursday it was partially spinning off PhonePe in a move aimed at widening the digital payments platform’s access to capital to fuel its growth. PhonePe will raise $700 million in primary capital, Bengaluru-based Flipkart said in a statement.
“Recognizing the momentum that has been achieved, as well as PhonePe’s significant growth potential, Flipkart’s Board determined that this was the right time to partially spin-off PhonePe so it can access dedicated capital to fund its long-term ambitions over the next three to four years,” Flipkart said.
The funds will be raised at a post-money valuation of $5.5 billion from existing Flipkart investors led by Walmart, the statement said. Flipkart will continue to be PhonePe’s majority shareholder.
Flipkart said PhonePe has more than 100 million monthly active users which helped it clock nearly one billion digital payment transactions in October.
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