News Update

PhonePe CEO refutes foreign-owned tag, emphasizes Indian origin and contribution

• ByStartupStory     |    February 24, 2024

Sameer Nigam, the CEO of PhonePe, addressed concerns regarding the perception of PhonePe as a foreign-owned company due to its Walmart ownership. He emphasized PhonePe’s contribution to India, stating it paid nearly a billion dollars in taxes to be domiciled in India. Nigam also highlighted the circumstances that led to PhonePe’s merger with Flipkart, stating competitive pressures from rivals like Paytm necessitated the move.

Nigam clarified that PhonePe’s alignment with Flipkart’s jurisdiction in Singapore was a strategic decision to compete effectively in the digital payments landscape. He underscored PhonePe’s recent move to redomicile back to India as a testament to its commitment to its Indian origins. Despite PhonePe’s association with Flipkart and subsequently Walmart, Nigam emphasized their recent separation and PhonePe’s independent operation under Walmart.

Regarding PhonePe’s journey post-acquisition by Flipkart and subsequently Walmart, Nigam revealed that he didn’t own a single share in PhonePe apart from employee stock options (ESOPs) due to the merger with Flipkart. He highlighted the cooperation from Walmart during PhonePe’s redomiciliation to India, including the payment of a billion dollars in taxes to facilitate the transition.

Nigam emphasized the unpredictability of business, noting the surprise of Flipkart’s sale to Walmart and the subsequent impact on PhonePe. He questioned the perception of PhonePe as foreign-owned, given its redomiciliation to India and its significant presence in the UPI transactions market.

PhonePe’s redomiciliation to India provides it with a better window for compliance as the Indian government tightens norms for digital payments firms. Despite the challenges and changes in ownership, PhonePe remains committed to its Indian roots and aims to list in India soon.

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