Value buy: Walmart got more than it bargained for in its deal with Flipkart, giving it a hand in India’s digital payments market through PhonePe. — AFP
WHEN Walmart Inc paid US$16bil (RM65bil) for control of India’s e-commerce pioneer Flipkart Online Services Pvt last year, the American retail giant got a little-noticed digital payments subsidiary as part of the deal. Now the business is emerging as one of the country’s top startups, a surprise benefit for Walmart from its largest-ever acquisition.
Flipkart’s board recently authorised the PhonePe Pvt Ltd unit to become a new entity and explore raising US$1bil from outside investors at a valuation of as much as US$10bil, according to people familiar with the matter, asking not to be named because the discussions are private. The funding may close in the next couple of months, although the talks are not finalised and terms could still change, they said.
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