Walmart Gets $1 Billion Tax Bill For Moving PhonePe HQ To India: Report

Walmart and other shareholders of PhonePe will have to incur $1 billion tax bill for moving the digital payment app's headquarters to India, according to a Bloomberg report.  

Earlier, PhonePe was based in Singapore. The payments app came under the majority ownership of Walmart after the multinational retail major acquired Flipkart, previously the parent of PhonePe.  

Now, PhonePe is headquartered in Bangalore and is raising funds at a $12 billion pre-money valuation from General Atlantic, Qatar Investment Authority and others, as per the report. 

The fintech firm was previously valued at $5.5 billion in December 2020 and the new valuation, in addition to the relocation, has reportedly caused the increased tax bill. New investors such as Tiger Global Management have purchased PhonePe shares at the new price, the report added. 

Neither PhonePe nor Walmart has commented on this development so far. 

More than 8,000 Indian start-ups have been incorporated in Singapore since 2000, according to a report by India Briefing. Singapore offers a friendlier tax regime, making it a favoured destination for start-ups. 

However, firms listed outside India would find it extremely hard to get listed in the Indian stock markets. PhonePe’s shift to India has given rise to speculations that the fintech start-up is getting ready for listing in the Indian equity market.