One of India’s largest digital payments platforms, PhonePe announced their separation from Flipkart on Friday in preparation for their foray into public funding.
Flipkart Singapore and PhonePe Singapore shareholders acquired shares directly in PhonePe India as a part of the transaction.
PhonePe has now successfully shifted its domicile to India from Singapore as planned earlier this year. Walmart will remain the majority shareholder of the business.
The goal of the separation was to allow both companies to grow and establish themselves independently in India, said both companies in a joint release.
The separation also provides new investors with the opportunity to participate in the Indian tech ecosystem helping unlock and maximize enterprise value for shareholders of the two companies, the companies added.
PhonePe plans on going public once the company becomes profitable in 2023.
“Flipkart and PhonePe are proud, homegrown Indian brands with a user base upwards of 400 million each. We are looking forward to the next phase of our growth as we invest in new businesses—such as insurance, wealth management and lending, while also enabling the next wave of growth for UPI payments in India. This will help propel our vision to provide billions of Indians with financial inclusion,” said Sameer Nigam, founder and chief executive officer of PhonePe.