“PhonePe Pvt. Ltd has received a 150 crore rupee (US$20.3 million) fund infusion from Singapore parent PhonePe Pte Ltd,” Livemint reported, citing documents from business information platform Tofler.
Roughly 198,755 shares were issued to PhonePe’s Singapore entity as part of the deal, according to the report.
Citing Accounting and Corporate Regulatory Authority (ACRA) filings, Livemint said that the infusion is part of Flipkart Pvt. Ltd. Singapore’s injection into PhonePe Pte Ltd. The Walmart-owned Indian ecommerce company’s Singapore entity owns close to an 87% share in its digital payments arm.
The deal is also independent of the US$700 million raise PhonePe recently secured in a round led by Walmart that brought the US retail giant’s holding in the payments company to 10%. The round, which also included participation from PhonePe’s existing backers, pushed the company’s valuation to US$5.5 billion.
Walmart’s investment comes as Flipkart announced a “partial spin-off” of PhonePe in a bid to boost its digital payments arm. The move also provides PhonePe an opportunity to build up a new board of directors and create an equity incentive or an employee stock ownership plan (ESOP) for its employees, it previously said.
Late last week, while speaking at Indian newspaper Hindustan Times’ Leadership Summit, Walmart CEO Doug McMillon said that both Flipkart and PhonePe still have room for other investors. The chief exec also said that the companies could raise money in several ways, including financial debuts.
“As we invested, we did mention that our plan is to IPO, and that hasn’t changed,” McMillon added.
Edited by Collin Furtado
(And yes, we’re serious about ethics and transparency. More information here.)
Stay updated on the go with our mobile app.
Get latest insights with smoother, more personalized experience through TIA mobile app.
