Walmart's record-setting Flipkart acquisition contained a hidden gem that could be worth up to $10 billion

- Walmart purchased Flipkart in 2018 for $16 billion as a way to break into the growing Indian e-commerce market. It marked the biggest acquisition in the retailer's history.
- Flipkart is planning to spin off its digital payments platform, PhonePe Pvt Ltd., into a separate entity.
- The stand-alone company is exploring a $1 billion capital raise at a valuation that could reach $10 billion, according to a Bloomberg report.
- Visit the Markets Insider homepage for more stories.
When Walmart dropped $16 billion on Indian e-commerce giant Flipkart last year in its biggest-ever acquisition, it didn't expect to also scoop up a startup worth as much as $10 billion.
Flipkart's board of directors is exploring a spin-off of PhonePe Pvt Ltd., a digital payments subsidiary, in a transaction that would seek $1 billion in funding for the venture, according to a new report from Bloomberg.
Bloomberg reported the unit could achieve a valuation of as much as $10 billion, or almost two-thirds of what Walmart paid for Flipkart initially. The funding round has not been finalized yet, according to Bloomberg's sources, but the deal could be closed in the coming months.If the deal is completed, PhonePe Pvt would become a stand-alone company with its own group investors, and Flipkart will remain a shareholder.
PhonePe Pvt has developed into one of India's dominant digital payments providers as the service's transaction volume and value has increase four-fold over the past year, according to Bloomberg.
Edward Yurma, an analyst at KeyBanc Capital Markets, said PhonePe could be valued up to $15 billion, Bloomberg reported.
Walmart bought Flipkart in an attempt to push further into ecommerce and compete with the likes of Amazon.
Walmart's stock is up 22% year-to-date.Now read more markets coverage from Markets Insider and Business Insider:

If we do decide to inhabit Mars, what would happen?

Read the pitch deck that Uber founder Garrett Camp created for the ride-hailing giant back in 2008 - before the company became the $120 billion giant it is today

Effects of lightning strikes on the human body

The Supreme Court just set the stage for a blockbuster ruling on Trump's financial records

THE AI IN INSURANCE REPORT: How forward-thinking insurers are using AI to slash costs and boost customer satisfaction as disruption looms
What is citizenship bill and how does it affect religious freedom in India?
India is slowing down so fast that even experts can’t keep up
Meet the 33-year-old Chennai techie who spotted Vikram Lander on Moon’s surface and alerted NASA
Raghuram Rajan's warning about Mudra loans last year may be coming true
Microsoft’s four-day work week idea will be good for Indians— but there is a lot to be fixed before that
Dues, death and an investigation — all that went wrong with OYO hotels in the last 6 months
Three wise men who exited Vodafone India just in time to make millions
SAIF Partners invested in Swiggy when they just had a landing page – today they are going after more seed stage startups, here’s why
SIGN IN WITH
FacebookGoogleEmail