Flipkart and PhonePe complete separation

Phone Pe is no longer owned by Flipkart. Shareholders in the Singapore entities of both firms have purchased shares in the India entity of Phone Pe, they said on Friday.

The entire base of Phone Pe is moving to India as a result of the acquisition. A source familiar with the matter says that the payments startup is in talks to raise as much as 1.5 billion at a pre-money valuation of $12 billion and use some of the proceedings to buy back some shares.

Walmart is still the majority shareholder.

Many successful entrepreneurs have been developed by the group. "We are proud to see Phone Pe grow and thrive as a successful organization in its own right."

Phone Pe will continue to scale and achieve its goal of providing financial inclusion to millions of Indians. The company is committed to empowering every Indian's dream by delivering value through innovation in technology and commerce, while helping small businesses connect to pan- India markets.

A source familiar with the matter says that Flipkart doesn't intend to reenter the consumer payments market. The company plans to become a separate entity in the late 2020s.

The separation will affect the value of the company. The funding round was announced in late 2020 and valued the company at over $5 billion. In July, the group raised over 3 billion dollars.

There are upwards of 400 million users forFlipkart and Phone Pe. We are looking forward to the next phase of our growth as we invest in new businesses, such as insurance, wealth management and lending, which will enable the next wave of growth for UPI payments in India. Sameer Nigam, founder and chief executive of PhonePe, said in a statement that this will help propel their vision.

The top payments app on the nation's UPI app is Phone Pe. Analysts said the extension of the deadline for India to enforce a check on the market share for players on the payments network is a major win for the market leaders.