PhonePe is partially spinning out from Flipkart and has raised $700m in a round led by Walmart and supported by prior investors.
The new round pushes the Indian startup’s valuation to $5.5bn, TechCrunch reported.
Flipkart had acquired the Bangalore-based FinTech in 2016 and the new partial spinout will reduce its ownership from 100% to 87%.
“This partial spin-off gives PhonePe access to dedicated long-term capital to pursue our vision of providing financial inclusion to a billion Indians,†said Sameer Nigam, founder and chief executive of PhonePe, in a statement seen by TechCrunch.
The digital payments company reportedly collected $28m in a funding round from Flipkart in April. However it had reportedly been struggling to find backers due to it putting a high valuation.
“This move will help PhonePe maximize its potential as it moves to the next phase of its development, and it will also maximise value creation for Flipkart and our shareholders,” said Kalyan Krishnamurthy, CEO of Flipkart Group, in a statement regarding the most recent raise.
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