Flipkart separates from PhonePe after six years of acquisition
- ByStartupStory | December 23, 2022
Flipkart and PhonePe today announced the full ownership separation of PhonePe. With this move, PhonePe becomes a fully India domiciled company. It was previously owned and operated by a Singaporean entity.
Existing Flipkart Singapore and PhonePe Singapore shareholders, led by Walmart, have purchased shares directly in PhonePe India, according to a press release from Flipkart. It also stated that Walmart will continue to be the majority shareholder in both business groups. Temasek, Tiger Global, and Tencent are among its other backers.
Sameer Nigam, Founder and CEO at PhonePe, said: “Flipkart and PhonePe are proud, homegrown Indian brands with a user base upwards of 400 million each. We are looking forward to the next phase of our growth as we invest in new businesses – like insurance, wealth management and lending, while also enabling the next wave of growth for UPI payments in India. This will help propel our vision to provide billions of Indians with financial inclusion.”
Kalyan Krishnamurthy, CEO of Flipkart Group, said: “The Flipkart Group has developed many successful entrepreneurs and seen impactful businesses started by former employees. We are proud to see PhonePe grow and thrive as a successful organization in its own right. We are confident PhonePe will continue to scale and achieve its vision of providing financial inclusion to millions of Indians. Flipkart stays committed to its purpose to empower every Indian’s dream by delivering value through innovation in technology and commerce while helping small businesses connect to pan-India markets.”
Flipkart Group acquired PhonePe Group in 2016. PhonePe claims that its platform has 400 million registered users. It has dominated the UPI ecosystem and, in December 2020, surpassed Google Pay’s UPI transaction volume for the first time. Since then, PhonePe has held a market share of more than 45%.
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