back Back

PhonePe is raising USD $700 mn; firm valued at USD $5.5 bn

By Edil Corneille

December 04, 2020

  • India
  • Phonepe
Share

PhonePe, digital, payments, account, Flipkart, Walmart, IndiaFlipkart, India’s homegrown e-commerce marketplace, announced a partial spin-off of PhonePe, the digital payments platform in the country. Registered users of the platform can send and receive money, recharge their mobiles, DTH, data cards, pay at stores, make utility payments, buy gold and make investments.

Withing four years since its founding, PhonePe crossed the 250 million registered user milestone, with over 100 million monthly active users (MAU) generating nearly a billion digital payment transactions in October 2020.

Recognising 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 that it can access dedicated capital to fund its long-term ambitions over the next three to four years.

The partial spin-off also provides the firm with an opportunity to constitute a new Board of Directors focused on supporting its development, and to create a tailor-made equity incentive or ESOP program for its employees.

In this financing round, the digital payments platform is raising USD $700 million in primary capital at a post-money valuation of USD $5.5 billion from existing Flipkart investors led by Walmart.

Flipkart will remain PhonePe’s majority shareholder, and the two businesses will retain their close collaboration.

Speaking on the development, Sameer Nigam, Founder and CEO at PhonePe, said, “Flipkart and PhonePe are already among the more prominent Indian digital platforms with over 250M users each. This partial spin-off gives PhonePe access to dedicated long-term capital to pursue our vision of providing financial inclusion to a billion Indians.”

Previous Article

December 04, 2020

Jeanne D’Arc Credit Union selects Fiserv to bolster its growth strategy

Read More
Next Article

December 04, 2020

DBS partners with PChome to launch online credit services in Taiwan

Read More







Advertise with us



IBSi Daily News Analysis

payment-- MarPay. Pointspay

May 25, 2022

India

Why are Pointspay and MarPay gaining traction in the payment industry?

Read More

IBSi FinTech Journal

  • Most trusted FinTech journal since 1991
  • Digital monthly issue
  • 60+ pages of research, analysis, interviews, opinions, and rankings
  • Global coverage
Subscribe Now

Other Related News

Today

Verto launches B2B multi-currency Global Account solutions

Read More

Today

FOO to provide FinTech solutions in the Kingdom of Saudi Arabia

Read More

Today

Revolut Business launches Spend Management to maintain lean finance teams

Read More

Related Reports

Sales League Table Report 2021

£ 1,500.00 / year

Know More
Emerging Technologies in Capital Markets

£ 500.00

Know More
Global Digital Banking Vendor and Landscape Report Q1 2022

£ 1,500.00 / year

Know More
Wealth Management & Private Banking Systems Report Q1 2022

£ 1,500.00 / year

Know More
Treasury and Capital Markets Systems Report 2021

£ 1,500.00 / year

Know More