PhonePe fully demerged: Flipkart

Walmart-owned Flipkart and PhonePe, on Friday, announced a full ownership separation of PhonePe, which involves hiving of the digital payments firm into a separate entity. Both entities will, however, operate under the US-based Walmart, a joint statement said on Friday.

As part of this transaction, existing Flipkart Singapore and PhonePe Singapore shareholders, led by Walmart, have purchased shares directly in PhonePe India. “This completes the move to make PhonePe a fully India-domiciled company, a process that started earlier this year. Walmart will (however) remain the majority shareholder of both business groups,” the statement said.

Establishing these businesses as individual entities will allow both to chart their own growth paths, as they continue building new e-commerce and payment offerings to Indian internet users.