Indian digital payments firm PhonePe has concluded the separation of its business from its owner Flipkart, a major e-commerce player in India.
The move allows both the firms to operate as separate entities and drive their growth in different fields.
It follows a decision taken by Flipkart’s board in December 2020 to partly spin-off PhonePe in order to help the payments firm to raise capital for its expansion.
In 2016, Flipkart bought PhonePe, which is currently said to have more than 400 million registered users.
Following the latest move, current shareholders of Flipkart and PhonePe in Singapore have been able to buy shares directly in PhonePe India.
The development also makes PhonePe a fully India-based firm, a procedure that began earlier this year.
However, Walmart will continue to be the majority shareholder in both the companies.
Sameer Nigam, founder and CEO of PhonePe, said: “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 – like 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.”
Since inception, PhonePe said to have digitised over 35 million offline merchants across Indian cities.
Kalyan Krishnamurthy, CEO of Flipkart Group, said: “The Flipkart Group has developed many successful entrepreneurs and seen impactful businesses started by former employees.
“We are proud to see PhonePe grow and thrive as a successful organisation in its own right. We are confident PhonePe will continue to scale and achieve its vision of providing financial inclusion to millions of Indians.”