PhonePe becomes a separate entity from Flipkart and raises Rs 4440 crores with a valuation of $5.5 billion

Walmart Inc-controlled Indian web-based business firm Flipkart said on Thursday it was halfway turning off PhonePe in a move pointed toward augmenting the advanced installments stage’s admittance to cash-flow to fuel its development. PhonePe will bring $700 million up in essential capital, Bengaluru-based Flipkart said in an articulation.

“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 assets will be collected at a post-cash valuation of $5.5 billion from existing Flipkart speculators drove by Walmart, the assertion said. Flipkart will keep on being PhonePe’s greater part investor.

“Flipkart and PhonePe are already among the more prominent Indian digital platforms with over 250 million 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,” said Sameer Nigam, Founder, and CEO at PhonePe.

Flipkart said PhonePe has in excess of 100 million month to month dynamic clients which helped it clock almost one billion advanced installment exchanges in October.

Kalyan Krishnamurthy, CEO of Flipkart Group, said, “As Flipkart Commerce continues to grow strongly serving the needs of Indian customers, we are excited at the future prospects of the 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.”