Digital payments platform PhonePe has completely its separation process from the Walmart-owned e-commerce platform Flipkart. Ahead of PhonePe’s initial public offering (IPO), a joint statement by both companies has asserted their ownership separation.
According to a report by PTI, the joint statement reads, “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.”
Flipkart acquired PhonePe in 2016. Even though the ownership separation process has been completed, it is the US-based retail giant Walmart that will have majority stake in both business entities.
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“Flipkart and PhonePe are proud, homegrown Indian brands with a user base upwards of 400 million each. We are looking forward to the next phase of our growth as we invest in new businesses – like insurance, wealth management and lending, while also enabling the next wave of growth for UPI payments in India. This will help propel our vision to provide billions of Indians with financial inclusion," PTI quoted PhonePe Founder and CEO Sameer Nigam as saying.
Additionally, even Flipkart Group CEO Kalyan Krishnamurthy, as per the report, said, “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.”
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Few months back, several media reports also hinted at PhonePe gearing up for its IPO. While preparations are still underway, a separation from Flipkart has opened the company to more market expectations.
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