Walmart-backed homegrown e-commerce platform Flipkart is ‘partially’ spinning off digital payments platform PhonePe.
- Flipkart is aiming to help the digital payments platform access long-term capital to fund its growth ambitions
- PhonePe would aim to raise $700 million in primary capital
Walmart-backed homegrown e-commerce platform Flipkart is ‘partially’ spinning off PhonePe, in a bid to help the digital payments platform access long-term capital to fund its growth ambitions over the next few years, the media has reported. PhonePe would raise $700 million in primary capital, Bengaluru-headquartered Flipkart said in a statement.
However, Flipkart would remain PhonePe’s majority shareholder. The partial spin-off also provides PhonePe an opportunity to constitute a new Board of Directors focused on supporting its development, and to create a tailor-made equity incentive or ESOP programme for its employees.
“As Flipkart Commerce continues to grow strongly serving the needs of Indian customers, we are excited at the future prospects of the group,” said Kalyan Krishnamurthy, CEO of Flipkart Group.
Digital payments platform PhonePe essentially competes against the likes of platforms such as Google Pay and Paytm, and has crossed 250 million registered user milestone, with over 100 million monthly active users (MAU) generating nearly one billion digital payment transactions in October 2020, the company said.