Walmart takes ownership of PhonePe from Flipkart

MUMBAI: Flipkart has transferred its stake in PhonePe to its parent Walmart as part of the US retail giant to separate the two businesses. As part of this transaction, existing Flipkart Singapore and PhonePe Singapore shareholders, led by Walmart, have purchased shares directly in PhonePe India.

In 2016, Flipkart acquired PhonePe, then a startup floated by the e-commerce firm’s former employees, for $20 million. The stake transfer to Walmart completes the move to make PhonePe a fully India-domiciled company from a Singapore-based one.

The separation process began in December 2020 when Walmart invested directly in PhonePe. The December 2020 funding round was for $700 million and led by Walmart. Walmart plans to fund yet another round which will value the payment company at over $12 billion.