Walmart's PhonePe ownership falls to 85% from 89%

Walmart, the retail giant, has announced that its shareholding in fintech firm PhonePe has declined from 89% to 85% as a result of the company's ongoing fundraising efforts, which have raised $1 billion. PhonePe has successfully secured a total of $850 million in primary capital during the current funding round as of the end of May.

In a recent regulatory filing, Walmart stated, "During the three months ended April 30, 2023, the company received $0.5 billion related to new rounds of equity funding for the company's majority-owned PhonePe subsidiary, which reduced the company's ownership from approximately 89% as of January 31, 2023, to approximately 85%."

Walmart's group firm, including a $200 million capital infusion from Walmart itself, has raised a total of $750 million until April 30. The ongoing funding round for PhonePe, with a pre-money valuation of $12 billion, has seen contributions of $550 million from General Atlantic and its co-investors. Additionally, Ribbit Capital, Tiger Global, and TVS Capital Funds have invested $100 million during this funding round.

The decrease in Walmart's shareholding highlights the success of PhonePe's fundraising efforts, attracting significant investments from notable investors. The infusion of capital will likely support PhonePe's growth and further strengthen its position in the fintech market.

PhonePe, a decacorn company (a startup valued at over $10 billion), has emerged as a prominent player in India's digital payments landscape. The company offers a range of services, including peer-to-peer payments, digital wallet, and merchant payments, leveraging the growing adoption of smartphones and digital transactions in the country.

As Walmart's ownership in PhonePe reduces, the fintech firm gains access to diverse funding sources and strategic partnerships, enabling it to expand its services and seize new opportunities in India's rapidly evolving digital payment industry.