- PhonePe — an India-based digital payments company within Walmart’s Flipkart — announced it was planning to raise $700 million from existing investors at a valuation of $5.5 billion.
PhonePe — an India-based digital payments company within Walmart’s Flipkart — announced it was planning to raise $700 million from existing investors. This round of funding will give PhonePe a valuation of $5.5 billion, according to CNBC.
By raising this funding, PhonePe will become more independent from Flipkart. And the company will have its board of directors including CEO Sameer Nigam and former Flipkart head Binny Bansal.
PhonePe is also going to have employee stock ownership plans that are separate from Flipkart. Flipkart will continue to be a majority shareholder in PhonePe.
“We are really excited to have access to dedicated long-term capital to further our ambitions in the financial services distribution sector as well as creating large innovative growth platforms for India’s micro, small and medium enterprises,” said Nigam in a statement.
PhonePe plans to be profitable by 2022. And the company is aiming for a public listing in 2023. Currently, PhonePe has over 100 million monthly active users. And the company also reported it hit nearly 1 billion digital payment transactions in October.