Key Highlights
- As part of the transaction, existing shareholders of Flipkart Singapore and PhonePe Singapore purchased shares in PhonePe India directly
- This is a process that started earlier this year. It completes the move to make PhonePe a fully India-domiciled company
- More than one in four Indians are now using PhonePe with over 400 million registered users
Flipkart has announced that the digital payments platform PhonePe will now be fully owned separately. The e-commerce giant Flipkart and PhonePe are now established as separate entities following the partial separation announced in December 2020, the company said in a statement. The Flipkart Group acquired the PhonePe group in 2016.
Existing shareholders in the Walmart-led Flipkart Singapore and PhonePe Singapore purchased shares in PhonePe India as part of the deal. According to the company, this completes a process started earlier this year to make PhonePe a wholly India-based company.
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CEO of Flipkart Group, Kalyan Krishnamurthy, said, “We are confident PhonePe will continue to scale and achieve its vision of providing financial inclusion to millions of Indians.”
According to a TechCrunch report, Flipkart has no plans to re-enter the consumer payments market after splitting from PhonePe. PhonePe had already announced that it wanted to become an independent entity in 2020.
The majority shareholder in both business groups will continue to be Wallmart. More than one in four Indians are now using PhonePe with over 400 million registered users.
Since its launch, PhonePe has digitized more than 35 million offline merchants spread across tier 2, 3, and 4 cities, and beyond.
Sameer Nigam, Founder and CEO at PhonePe, said, “We are looking forward to the next phase of our growth as we invest in new businesses — like insurance, wealth management, and lending, while also enabling the next wave of growth for UPI payments in India.”
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