- Fintech player PhonePe, a part of the Walmart-controlled Flipkart group, said on 3rd October that it had completed its domicile moving process from Singapore to India.
- The development comes ahead of its plans to launch an initial public offering (IPO) to expand its financial services portfolio and deepen its core United Payments Interface (UPI)-based payments operations and investment banking.
The company stated that over the past year, PhonePe had directly moved all businesses and subsidiaries, including Insurance Broking Services and Wealth Broking businesses of PhonePe Singapore, to PhonePe Pvt Ltd-India.
It also said that PhonePe’s board recently approved the creation of a new ESOP plan and the migration of over 3,000 PhonePe Group employees’ existing Employee Stock Ownership Plans (ESOPs) by releasing new ESOPs under a new plan of PhonePe India.
It said that under the newly liberalized automatic Overseas Direct Investment (ODI) rules, PhonePe has also moved the ownership of the latest acquired IndusOSAppstore (OSLabsPte Ltd) from Singapore to India.
Therefore, all PhonePe Group businesses and entities are currently wholly-owned by and consolidated under PhonePe Pvt Ltd-India.
The digital payment company is seeking a valuation of up to $10 billion (roughly INR 81,500 crore) and plans to list on Indian bourses.
PhonePe was established by ex-Flipkart executives Sameer Nigam, Rahul Chari, and Burzin Engineer. Flipkart acquired it in 2016. Walmart acquired Flipkart in 2018, and PhonePe was also part of the transaction.
PhonePe has applied for a mutual fund license and a NBFC license. It has acquired three companies, namely, WealthDesk, OpenQ and GigIndia. PhonePe is the leader in the UPI space and has a 47 percent market share in monthly transactions.
PhonePe holds a mutual fund distribution license and will add stocks and exchange-traded funds to its increasing list of wealth management products.
It announced that it would launch UPI SIP (Systematic Investment Plan) for investment in gold. Users can invest in high-purity 24K gold of a particular amount monthly. The gold can be accumulated in insured bank-grade lockers maintained by MMTC-PAMP and SafeGold.
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