Flipkart partially spins off PhonePe in $700 million fundraising round

E-commerce major Flipkart on Thursday announced a “partial spin-off” of PhonePe as the digital payment firm raises USD 700 million in funding – valuing it at USD 5.5 billion. In this financing round, PhonePe is raising USD 700 million (about Rs 5,172 crore) in primary capital at a post-money valuation of USD 5.5 billion from existing Flipkart investors, led by Walmart, a statement said.
Flipkart will remain PhonePe’s majority shareholder, and the two businesses will retain their close collaboration, it added.
“Recognising 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,” the statement said.
PhonePe has crossed the 250 million registered user milestone, with over 100 million monthly active users (MAU) generating nearly one billion digital payment transactions in October 2020.