Home / Companies / News /  PhonePe raises 150 crore from Flipkart

Bengaluru: PhonePe Pvt. Ltd has received 150 crore fund infusion from Singapore parent PhonePe Pte Ltd, according to documents sourced from business information platform Tofler.

As part of the transaction, close to 198,755 shares were allotted to PhonePe’s Singapore entity.

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According to regulatory filings on Accounting and Corporate Regulatory Authority, Singapore, accessed by Mint, this is part of a fund infusion into PhonePe Pte Ltd by majority shareholder Flipkart Pvt. Ltd. Singapore, which owns close to 87% in the payment entity.

The round is independent from the latest $700 million funding PhonePe is raising, which will be led by Walmart and minority investors such as Tiger Global Management.

Post the $700 million infusion, PhonePe will be valued at $5.5 billion, with Walmart owning almost 10% in the entity, along with other minority investors who will hold the remaining 3% stake.

Last week, PhonePe said it will be partially hiving off from Flipkart Group, and will set up an independent board of directors. Flipkart group, which will continue to be majority investor in the entity, owns fashion e-tailer Myntra as well as logistics arm Ekart.

The board of directors will include Flipkart co-founder Binny Bansal, PhonePe founders, Sameer Nigam and Rahul Chari, along with Rohit Bhagat. Bhagat currently serves as an independent director at Flipkart Private Ltd.

PhonePe's board which will be finalised in the first quarter of next year will also include two independent directors from US-retail giant Walmart along with senior advisors from the BFSI sector, Mint reported last week.

As a result of the corporate restructuring, PhonePe’s Employee Stock Ownership Plan (Esop) pool will be also be independent of Flipkart, with all employees having the right to receive PhonePe Esops.

This move is in line with PhonePe’s plans of filing an independent Initial Public Offering (IPO). Mint first reported PhonePe’s plans to go public by 2023, and turning profitable in the year 2022.

With close to 250 million customers and 100 million monthly active users, PhonePe chief Sameer Nigam, recently said, that the additional funding will be used by the company to take its products into rural geographies and amongst low-income groups.

With this, the company will also invest in growing its financial services portfolio, which includes insurance and mutual funds, as it also looks build products for kiranas.

"Our focus will be on enabling ‘hyperlocal commerce’ for these 100 million kiranas and SMEs, as well as for the at-home and gig entrepreneur segments. Hyperlocal commerce will be a big focus for us next year (2021), as we continue pilots in this space," said Nigam in a recent interaction with Mint.

PhonePe is also discussing to branch out into B2B payments, as it looks to offer new systematic investment plan (SIP) products in areas of wealth management.

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