As the payments services providing major PhonePe looks to raise its largest-ever funding round, the Indian e-commerce giant Flipkart has announced to have completed the 100% separation of the unicorn company.
Following the development, PhonePe has become the most-valued fintech company in the country.
The Bengaluru-headquartered digital payments and financial technology company PhonePe shifted its registered entity from Singapore to India in October ahead of its plans to launch an IPO in the country, stated sources.
“We are a made-in-India company. Every office, data centre, and employee of ours is here. There is no reason why we should not contribute to wealth creation in this market,” said the co-founder and CEO of the company Sameer Nigam in an interview in June.
As per a joint statement published by the Walmart-backed Flipkart as well as PhonePe on Friday, addressing the completion in full ownership separation of the unicorn company, the two giants said that setting up the businesses as separate entities shall provide value, while creating new opportunities for investors to participate in the Indian tech ecosystem.
This will help unlock and maximize enterprise value for shareholders of the two companies, the statement said.
It further added, “As part of this transaction, existing Flipkart Singapore and PhonePe Singapore shareholders, led by Walmart, have purchased shares directly in PhonePe India. This also completes the move to make PhonePe a fully India-domiciled company, a process that started earlier this year.”
Regarding the latest development, the CEO of Flipkart Group, Kalyan Krishnamurthy said that the Group has developed several successful entrepreneurs as well as witnessed impactful businesses started by former employees.
“We are proud to see PhonePe grow and thrive as a successful organization in its own right. We are confident PhonePe will continue to scale and achieve its vision of providing financial inclusion to millions of Indians,” he added.
