Walmart’s Flipkart aimed to widen the digital payments business

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Walmart Inc-controlled Indian e-commerce firm Flipkart said it was partially spinning off PhonePe in a move aimed at widening the digital payments platform’s access to capital to fuel its growth.

They added that, PhonePe, which competes with Alibaba-backed homegrown payments pioneer Paytm and GooglePay, will raise $700 million in primary capital. And Flipkart will continue to be PhonePe’s majority shareholder.

The statement said that The funds will be raised at a post-money valuation of $5.5 billion from existing Flipkart investors led by Walmart.

PhonePe has more than 100 million monthly active users which helped it clock nearly one billion digital payment transactions in October.