PhonePe, the crown jewel in Flipkart’s takeover by Walmart. And it is “partially” spinning off the Bangalore-based business services. The firm said on Thursday. The firm said it obtained $700 million in a new investment round to kick off its new journey.
This round, which was not disclose. And further, it was lead by Walmart, with encouragement from some existing investors, the company said. The new play gave PhonePe, founded by three former Flipkart employees. And also a $5.5 billion post-money estimate.
What’s the plan further?
Today’s decision is a significant boost to the confidence investors are showing on PhonePe. The startup is now engaging with investors for new capital for several quarters. At most limited, one instance, it struggles to raise funds at a $3 billion cost earlier this year. And sources TechCrunch report earlier. Nevertheless, according to people intimate with the matter, it hoped to raise about $1 billion at an estimate. And as high as $10 billion last year.
We were speaking on the progress, Sameer Nigam, Founder, and CEO. They, said, “Flipkart and us are then among the more leading Indian digital platforms. They are with over 250M users each. This partial spin-off gives our comapny entrance to dedicated long-term capital. The capital to pursue our vision of providing financial inclusion to a billion Indians.‘’
The partial spin-off, which is going in the products for more than a year now. And it intends that Flipkart‘s stake in PhonePe will decrease from 100% to 87%. “This unfair spin-off gives PhonePe way to dedicated long-term resources to pursue our vision of providing financial inclusion to a billion Indians,” said Sameer Nigam, founder, and chief executive of PhonePe, in a statement.
Flipkart will remain PhonePe’s preponderance shareholder. And the “two companies will retain their heavy collaboration,” PhonePe said.
PhonePe and Google Pay Top:
PhonePe and Google Pay now also compete with Paytm. And which is back by SoftBank and Alibaba. Paytm, which was personally valued at $16 billion last year when it raised $1 billion, has shifted its attention to merchants in recent quarters. UPI currently offers no way for companies to make any money on its platform. At stake is India’s mobile cash market, which is estimated to reach $1 trillion by 2023, according to Credit Suisse.