PhonePe Gets another Cheque of Rs.150 Crore from Singapore Parent days After Spin Off

Walmart-owned Flipkart’s digital payment entity PhonePe raises Rs.150 crore ($20.3 million) from its Singapore-based parent company PhonePe Pte Ltd, erstwhile Flipkart Payments Private Limited, as per Tofler filings. The funding comes days after Flipkart partially spun-off PhonePe involving $700 million investment into it led by Walmart and minority investors including Tiger Global Management.

PhonePe had raised capital from Flipkart in April and from the parent company in April. The latest investment takes the total fund infusion in the company to $1.6 billion, which will provide more muscles to compete with Paytm, Google Pay, MobiKwik, WhatsApp Payments in India. This will value the company at $5.5 billion. Walmart will own almost 10 percent in the entity, while the minority investors will hold the remaining three percent. Flipkart will continue to be a majority investors in the entity.

According to a statement, Flipkart and PhonePe saw all-time high monthly active users, which helped the company’s international businesses post $29.6 billion in net sales in Q3 ended October 31.

PhonePe is all set to have a new board post the spin-off. The board will include Flipkart co-founder Binny Bansal, PhonePe founders Sameer Nigam and Rahul Chari, and Rohit Bhagat, an independent director at Flipkart Pvt Ltd. The board will also have two independent directors from Walmart apart from having senior advisors from the BFSI sector.