Digital payments platform PhonePe has raised INR 150 Cr funding from majority shareholder and ecommerce giant Flipkart. PhonePe allocated 198,755 shares to Flipkart’s Singapore-based holding and with this round Flipkart holds about 87% stake in the payments firm and continues to be a majority investor in the payments entity.
The company had said that it will be partially hiving off from Flipkart Group and set up an independent board of directors. Flipkart said that the partial spin-off would help PhonePe access dedicated capital to fund its long-term ambitions over the next three to four years.
Alike Flipkart, PhonePe is also working aggressively to go public by 2023 as a separate entity in the US or India, aiming a valuation of $7 to $10 bn. Last week, Flipkart owner Walmart’s chief executive Doug McMillon reiterated the company’s commitment to seeing Flipkart as well as PhonePe go for an IPO.