Flipkart, the parent company of Walmart, has completed the demerger of PhonePe. PhonePe, payments, and financial services unicorn, is planning to raise a massive round of funding, making PhonePe the most valuable fintech start-up in India. A spin-off of these businesses will also increase the value of the company among investors.
Both companies said in a joint statement that it will help increase their capacity. As part of this transaction, shareholders of flipkart singapore and PhonePe singapore have directly purchased shares in PhonePe India. This process, initiated earlier this year, also completes PhonePe's move to become a fully indian company. Last October, PhonePe began the process of shifting its registered headquarters from singapore to India. This move by PhonePe has taken several proactive steps ahead of its IPO in India.
Generally, indian companies move to singapore from india for tax benefits, business expansion, and to get new investments. But it has also raised many questions as PhonePe has been operating in reverse. Last June, PhonePe co-founder and CEO Samir Nigam said that PhonePe was in the process of shifting its registered office from singapore to India.
He also said that the company board has also signed in support of this project. However, he had also said at that time that the process may take some time to complete. Every single one of their offices, data center, and staff is located here. That said they were not created to make money in this market. The leader in UPI transactions in india, the fintech company has more than 400 million registered users. PhonePe UPI accounts for 47% of the monthly market share. 
Meanwhile, they plan to focus on the next business move which is insurance, asset management, credit servicing, etc. He also said that this will help provide loan services to lakhs of customers.PhonePe was acquired by flipkart in 2016. However, flipkart spun off itself as a separate company in 2020. PhonePe then raised $700 million in funding from several investors, including Walmart, at a valuation of $5.5 billion, which remains Pohnpey's largest shareholder. 
The company, which has been expanding its financial services over the last few years, plans to focus on various businesses. It is already in talks to raise between $700 million and $1 billion. In the meantime, there are reports that PhonePe is planning to charge for its QR scan service and UPI service to increase its revenue.
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