Flipkart to spun off PhonePe with new deal

The digital payment system has been adopted by most of the users in the world. The current pandemic has shown us just what exactly is the value of the digital currency in our lives. PhonePe is a well know digital transaction service provider and is a preferred payment method of many, including me.

Recently the company raised $700 million in a fresh round of funding led by Walmart. Flipkart announced that PhonePe will now be partially spun off into a separate entity. It will get a new Board of Directors and will also have a new shareholding pattern. Flipkart fully owns PhonePe, and now the company is pushing it for a partial spun off with this fundraising.

“This partial spin-off gives PhonePe access to dedicated long-term capital to pursue our vision of providing financial inclusion to a billion Indians,” said Sameer Nigam, founder and CEO of PhonePe. After the fund infusion, PhonePe is now valued at $5.5 billion. Flipkart will continue to remain its majority shareholder, but its stake will now be reduced to 87% from 100%.

According to a joint statement from Flipkart and PhonePe, “Flipkart’s Board determined that this was the right time to partially spin-off PhonePe so it can access dedicated capital to fund its long-term ambitions over the next three to four years.”

- Advertisement -720x200

According to sources, Flipkart will also create an Employee Stock Option Plan (ESOP) for its employees. “This move will help PhonePe maximize its potential as it moves to the next phase of its development, and it will also maximize value creation for Flipkart and our shareholders.”

source

Untitled-13

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Related Articles

Stay Connected

13,642FansLike
354FollowersFollow
88FollowersFollow

Hot Topics

300x600

Latest Articles

Trending

Samsung becomes trending on Twitter after the free Samsung x BTS photocards offer

Samsung is the South Korean Electronics giant who is a dominant force in India because of its popularity in the country. It is widely...

All the upcoming Indian web series in January 2021

In this pandemic situation, digital media is the most powerful way for entertainment. As usual Indian web series has made a mark on this...

Games that you can still play with NVIDIA GT 710

Want to play games on your old rig? Do not have enough money? Here are the modern games that you can still play on...

All the upcoming Indian Movies on OTT platforms in January 2021

In this pandemic situation, it is difficult to go to watch movies in the theatre. The OTT platforms are always there to entertain us....

Featured