Indian online retailer Flipkart has acquired payments start-up PhonePe for an undisclosed amount.
Launched in December 2015, the payments start-up was co-founded by former Flipkart executives Sameer Nigam and Rahul Chari.
Currently, PhonePe is designing a product based on Unified Payments Interface (UPI), which will allow users to make payments just by using mobile number. UPI, an initiative of the National Payments Corp. of India, is a new process in electronic funds transfer.
Following the acquisition, the unit of PhonePe will join Flipkart but will function as an independent business unit.
Flipkart CEO Binny Bansal said: "UPI has the potential of transforming the entire payments ecosystem in the country. The acquisition of PhonePe is in-line with Flipkart’s focus on driving innovation on the payments front. I am delighted that two Flipkart veterans – Sameer and Rahul are at the helm of this initiative."