E-commerce giant Flipkart today announced a partial spinoff of its payments platform PhonePe to help it raise capital independently.
PhonePe has raised USD 700 million in the latest funding round and has been valued at USD 5.5 billion.
“Most important for us is the fact that we got USD 700 million of direct primary capital that is coming to PhonePe, we actually have a warchest and we can plan 3-4 years strategy at PhonePe,” Nigam said in an interview to CNBC-TV18.
“PhonePe now has separate sort of standing and we actually have ESOP program and incentive structures for our own employees that is very important as we try and attract even more amazing talent and try and retain the good talent that we have in the company today,” Nigam said.
“It is a partial spinoff so Flipkart still remains absolute majority owner but the board also acknowledged that we now become a really large platform in our own way,” he said.Watch this video for more.