Flipkart Announces Partial Spin-Off of PhonePe to Help Fuel Long-Term Growth Plans

Flipkart Announces Partial Spin-Off of PhonePe to Help Fuel Long-Term Growth Plans

Flipkart on Thursday introduced a partial spin-off of PhonePe in a transfer that may assist the digital funds platform to entry devoted, long-term capital to fund its development ambitions.

PhonePe has crossed the 250 million registered consumer milestone in simply 4 years with over 100 million month-to-month lively customers, producing practically one billion digital cost transactions in October.

Flipkart mentioned its board of administrators decided that this was the suitable time to partially spin-off PhonePe so it may possibly entry devoted capital to fund its long-term ambitions over the following three to 4 years.

The partial spin-off additionally supplies PhonePe a possibility to represent a brand new board of administrators centered on supporting its improvement, and to create a tailored fairness incentive or worker inventory choice (ESOP) programme for its workers.

In this financing spherical, PhonePe is elevating $700 million (roughly Rs. 5,200 crores) in major capital at a post-money valuation of $5.5 billion (roughly Rs. 40,600 crores) from present Flipkart buyers led by Walmart.

Flipkart will stay PhonePe’s majority shareholder, and the 2 companies will retain their shut collaboration.


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