Walmart's Flipkart to Partially Spin Off Payment Platform PhonePe
December 03 2020 - 4:09AM
Dow Jones News
Ben Otto
Walmart Inc.'s Indian e-commerce marketplace Flipkart is
partially spinning off its digital-payments platform in a deal to
raise $700 million in fresh capital for the unit.
Flipkart said Thursday that PhonePe will raise $700 million in
primary capital from existing Flipkart investors led by Walmart.
Bengaluru-based Flipkart will remain majority shareholder of
PhonePe.
The latest fundraising round will give PhonePe, one of the
largest digital-payments platform in India, a post-money valuation
of $5.5 billion, Flipkart said.
"This partial spinoff gives PhonePe access to dedicated
long-term capital to pursue our vision of providing financial
inclusion to a billion Indians," said Sameer Nigam, PhonePe's
founder and chief executive.
PhonePe, which competes with Google Pay and Paytm in India, has
more than 100 million monthly active users who generated nearly a
billion digital payment transactions in October, according to
Flipkart.
Walmart in 2018 acquired a controlling stake in Flipkart for $16
billion--the U.S. giant's largest-ever acquisition.
Write to Ben Otto at ben.otto@wsj.com
(END) Dow Jones Newswires
December 03, 2020 03:54 ET (08:54 GMT)
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