Flipkart to spin-off PhonePe, payments firm to be valued at $5.5 billion

Move will help PhonePe access dedicated, long-term funds for its growth plans. In this financing round led by Walmart, PhonePe is raising $700 mn primary capital at post-money valuation of $5.5 bn

E-commerce giant Flipkart is doing a partial spin-off of PhonePe, India’s largest digital payments platform. The move will help PhonePe access dedicated, long-term capital to fund its growth ambitions including going public by 2023.

In this financing round, PhonePe is raising $700 million in primary capital at a post-money valuation of $5.5 billion from existing Flipkart investors including Tiger Global, led by Walmart, the world’s largest retailer, according to the industry sources. They said PhonePe’s pre-money valuation is $4.8 billion. The fresh funding would come to PhonePe in two tranches of $350 million each.

“In this round, there is no