• About
  • Contact
Sunday, April 18, 2021
Next Big Brand
  • .
  • News
  • Internet
  • Startup
  • OTT
  • Industries
  • FMCG
  • Cryptocurrency
  • Retail
  • Tech
  • Case Study
  • Interview
No Result
View All Result
Next Big Brand
Home Internet

PhonePe to become a new entity,Valuation Might Cross $10 bn

Pritish raj by Pritish raj
July 10, 2019
in Internet, Tech
3 min read
0
PhonePe- Next big Brand

phonepe-next-big-brand-source-phonepe

Share on FacebookShare on Twitter
  • PhonePe has emerged as the surprise benefit for Walmart from its largest-ever acquisition.
  • The board recently authorized the PhonePe Pvt. Ltd. unit to become a new entity and explore raising $1 billion.

Last Year, Walmart paid huge amount of money to get control of India’s e-commerce leader Flipkart Online Pvt. Ltd. and in the deal got a little-known digital payment subsidiary PhonePe. Now with increasing internet and smartphone user base, PhonePe has emerged as the surprise benefit for Walmart from its largest-ever acquisition.

The board recently authorized the PhonePe Pvt. Ltd. unit to become a new entity and explore raising $1 billion from outside ventures and investors at a valuation of $10 billion, according to people close to the organization. The funding is expected to be closed by the next couple of months, although the talks are not yet finalized and terms are yet to be decided.

The unit would then become independent with a distinct investor base, although Walmart-owned Flipkart would remain a shareholder. Walmart and Flipkart didn’t respond to emails seeking comment.

Edward Yruma, an analyst from KeyBanc Capital Markets, wrote in a recent research note, PhonePe is an “underappreciated asset. He estimated the business may be worth $14 billion to $15 billion, separate from Flipkart’s e-commerce operation.

PhonePe- next big Brand
Interface of PhonePe
Source:- techsavie

Started At Right Time

PhonePe — which means “on the phone” in Hindi and is pronounced “phone pay” — has grown into one of India’s leading digital payments companies. Its volume and value of transactions have roughly quadrupled over the past year as the country’s consumers adopt the technology to transfer money digitally to businesses and each other. PhonePe is gaining ground on Paytm, which leads the field and is backed by Warren Buffet.

The startup was founded in December 2015 by three friends who left Flipkart to get it off the ground. Within a year, Flipkart founders Binny Bansal and Sachin Bansal decided to acquire PhonePe, realizing that solving payments friction would make it easier for consumers to buy online. 

The service gained momentum by offering an array of services, including mutual funds, movie tickets, and airline bookings. Earlier this year, it began using Bollywood star Aamir Khan in its advertising.

PhonePe- Next Big brand
One of the major attraction of phonepe is cashback.
Source:- Flipkart story

What lies ahead?

“Globally, hardly any privately held fin-tech company has reached PhonePe’s scale on both sides of the network so rapidly,” Sameer Nigam, PhonePe’s co-founder and chief executive officer, said in a statement, pointing to its 150 million-plus customers and more than 5 million merchants. “That’s why the strong investor interest.”

Walmart is still grappling with whether to bring in strategic or financial investors, according to one of the people familiar. While a strategic investor would likely be better for growth, senior Walmart executives are concerned that such backers typically want more voting rights, the person said. Walmart wants to use the lessons from PhonePe in other operations around the globe.

The market has vast potential. Digital payments in India are projected to reach $1 trillion by 2023 from about $200 billion now, said Credit Suisse Group AG. Beyond PhonePe and Paytm, Google Pay, Amazon Pay, and the soon-to-launch WhatsApp payments service will compete for customers. They’re taking advantage of India’s Unified Payment Interface, a technology backbone that includes 140 of the country’s banks and digital payments companies.

Demonetization played a crucial role and entities such as Phonepe and Paytm grabbed it. With Flipkart allowing PhonePe to become a separate entity

#phonepe #flipkart #ecommerce

Previous Post

Global App Revenue Reached $39 Billion in the First Half of 2019

Next Post

SonyLIV Crosses 100 Mn App Downloads Landmark on Play Store

Pritish raj

Pritish raj

Pritish Raj is a content writer at Next Big Brand. Hailing from the diversified state of Bihar, he is an engineer by education who chooses the way of poetry, photography, and writing to kick off his career. Highly enthusiastic about brands and startups, he aims to be a travel content creator.

Related Posts

Pine Labs Acquires Fave in Deal Valued over $45 Million
Case Study

Pine Labs – Transforming the Digital Transaction Environment

April 17, 2021
Gupshup Raises $100 Million, Joins Unicorn Club
Case Study

Gupshup: Providing Secured Feature Rich Bot Platforms to its Clients

April 17, 2021
60% of Indian CMOs to have budgets for influencer marketing in 2021:ClanConnect
Case Study

60% of Indian CMOs to have budgets for influencer marketing in 2021:ClanConnect

April 16, 2021
Zeta in Advanced Talks with SoftBank to Raise at $1 Billion Valuation
Internet

Zeta in Advanced Talks with SoftBank to Raise at $1 Billion Valuation

April 15, 2021
3.5 Million MobiKwik Users Data Leaked, Firm Denies
Case Study

Mobikwik: Growing Indian Startup in a Competitive Payment Niche

April 14, 2021
Tring Emerges As The Largest Celebrity Engagement Platform In India
Media

Tring Emerges As The Largest Celebrity Engagement Platform In India

April 14, 2021
Next Post
sony liv- Next Big Brand

SonyLIV Crosses 100 Mn App Downloads Landmark on Play Store

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

RECOMMENDED NEWS

Jio New Subscribers

Jio wins battle against rivals and plan to expand

2 years ago
Shopclues pursuing an eleventh hour buyout from Snapdeal to stay afloat

Shopclues pursuing an eleventh hour buyout from Snapdeal to stay afloat

2 years ago
Nazara IPO Gets Thumbs Up from the Analysts

Nazara IPO Gets Thumbs Up from the Analysts

1 month ago
Tamil Nadu Government Bans Online Gaming Which Involves Betting

Tamil Nadu Government Bans Online Gaming Which Involves Betting

5 months ago

FOLLOW US

  • 33.8k Fans

BROWSE BY TOPICS

2018 League amazon Amazon Great Indian Sale Amazon Prime Apple Apple Inc Automobile Industry Balinese Culture Bali United Budget Travel Champions League Chopper Bike Doctor Terawan facebook Facebook app future group hotstar Indian OTT Platforms Indian Smartphone Market Istana Negara Jio Market Stories Maruti Suzuki National Exam Netflix Netflix India Netflix Originals oppo OTT OYO Realme Reliance Industries Limited Reliance Jio RIL Samsung Tata Motors Tiktok TikTok India TikTok Videos Visit Bali Vivo whatsapp Xiaomi Xiaomi India YouTube
Next Big Brand

We Talk About Brands

Follow us on social media:

Recent News

  • Pine Labs – Transforming the Digital Transaction Environment
  • Gupshup: Providing Secured Feature Rich Bot Platforms to its Clients
  • boAt Raises Rs 50 Crore from Qualcomm Ventures

Instagram

Follow Me!

Latest News

Pine Labs Acquires Fave in Deal Valued over $45 Million

Pine Labs – Transforming the Digital Transaction Environment

April 17, 2021
Gupshup Raises $100 Million, Joins Unicorn Club

Gupshup: Providing Secured Feature Rich Bot Platforms to its Clients

April 17, 2021
  • About Us
  • Privacy Policy
  • Terms and Conditions
  • Disclaimer
  • DMCA Policy
  • Our Team
  • Contact Us
  • Sitemap

© 2019 NBB. All Rights Reserved.

No Result
View All Result
  • .
  • News
  • Internet
  • Startup
  • OTT
  • Industries
  • FMCG
  • Cryptocurrency
  • Retail
  • Tech
  • Case Study
  • Interview

© 2019 NBB. All Rights Reserved.

Login to your account below

Forgotten Password?

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.