On the dawn of Friday Walmart-owned ecommerce platform Flipkart and digital payment platform Phonepe announced they have completed the ownership separation of phonepe from Flipkart as the company goes for an IPO.
Flipkart e-commerce platform had acquired phonepe in 2016 when there was a UPI frenzy however as of today they have completely separated both businesses. The two companies have conveyed that operating as separate entities will them both to chart their own growth plan
As a part of this transaction, the existing Flipkart Singapore shareholders as well as phonepe Singapore shareholders led by walmart have purchased shares directly in phonepe India private limited. This move completed the process of making phonepe an indian domiciled company from a Singapore-domiciled company which started earlier this year.
Walmart to remain the biggest shareholder in both of these companies
The company in October said that the board had approved creation of a new employee stock option plan(ESOPs) and migration of more than 3000 Phonepe group employees existing ESOPs by issuing new Esops under phonepe india
The CEO of Flipkart, Kalyan Krishnamurthy has said that The Flipkart Group has developed many successful entrepreneurs and seen 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,
Subsequently, phonepe is going ahead with the plan to raise as much as $1 billion from various VC firms such as General Atlantic and existing investors such as Tiger global management , Qatar investment authority and Microsoft corp at a valuation close to $13 billion. Phonpe pay is also planning to go public once its core business turns profitable , which the company hopes to achieve in 2023.
Phonepe consolidated operating revenue more than doubled in the financial year of 31st march 2022 to Rs 1646 crore. However its losses broadened Rs 2014 crore from Rs 1728 crore in the previous fiscal.
