News Update

PhonePe acquires Indus OS, settles dispute with Affle Global

• ByStartupStory     |    July 30, 2022

On Friday (July 29),Digital payments and financial services company PhonePe announced that it has completed the long pending acquisition of OSLabs, a mobile platform after reaching an amicable settlement with the company’s majority shareholder Affle Global Pte Ltd. PhonePe acquired Affle Global’s entire stake at a premium. The company, however, did not disclose the final valuation at which the deal was reached.The closure of the deal came after a long-winding legal wrangle between PhonePe and IndusOS shareholders Affle and Ventureast Fund on the valuation of IndusOS. 

 In May 2021, Walmart-owned PhonePe was close to acquiring IndusOS  at a valuation of $60 million. The largest shareholder in IndusOS, Affle took objection to the deal and filed an injunction at  Singapore International Arbitration Center (SIAC) against PhonePe, claiming it has the Right of First Refusal (RoRF). As per Affle, the true valuation of IndusOS stood at $90 million and it was unwilling to sell its majority stake at a lower valuation. PhonePe likewise  filed a case against Affle and Ventureast at the SIAC.

Founded in 2007, Indus OS has raised about $20 million so far from Samsung Ventures, Omidyar Network and Snapdeal founders Kunal Bahl and Rohit Bansal among others.

Sameer Nigam, the founder and CEO of PhonePe said, “We are very excited to embark on this journey with OSLabs, and build just the kind of the localised App store that India needs.”

Mei Theng Leong, Director of Affle Global said, “With the closure of this deal, PhonePe can build a horizontal, local app store. We wish the PhonePe team the very best for its stated vision of building a homegrown horizontal, local Appstore.”

Leader of Unified Payments Interface PhonePe, has plans for IndusOS to work with PhonePe’s Switch, a service which enables multiple apps such as Ola, redBus, Goibibo, Myntra, Delhi Metro, and Grofers on a single platform.PhonePe itself runs its own ‘super app’ platform Switch to offer users access to popular consumer internet apps on its platform.

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