PhonePe, a major payments company, has officially separated from Flipkart, according to the companies. Both businesses will now operate as separate entities within the Walmart group, with Walmart remaining the majority shareholder of both. The separation was completed as part of a partial separation announced in December 2020, and includes the purchase of shares in PhonePe India by Flipkart Singapore and PhonePe Singapore shareholders led by Walmart. As a result, PhonePe is now a fully India-domiciled company. The separation comes as PhonePe prepares for its own initial public offering, which is expected to take place in the next 18-24 months and involve the raising of approximately $1 billion at a valuation of $13 billion.

As part of this transaction, existing Flipkart Singapore and PhonePe Singapore shareholders, led by Walmart, have purchased shares directly in PhonePe India. “This completes the move to make PhonePe a fully India-domiciled company, a process that started earlier this year,” it said.

Walmart will remain the majority shareholder of both business groups.

“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,” said Sameer Nigam, founder and chief executive officer at PhonePe. “This will help propel our vision to provide billions of Indians with financial inclusion,” he said

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