Flipkart Announced To Make PhonePe A Separate Entity

Flipkart announced to make PhonePe a separate entity, know how it will benefit the digital payment company.

Flipkart, the leading e-commerce company, announced Thursday to make PhonePe a partially separate entity.

However, a majority stake in PhonePe will remain with Flipkart and the two companies will continue to collaborate with each other as before.

A statement issued by the company said that given the growth momentum and the potential for the significant growth of PhonePe in the coming years.

Flipkart’s board has decided to establish PhonePe as a partially separate entity.

This is an appropriate time because it allows the company to raise capital separately to meet its long-term goals over the next three to four years.

PhonePe has recently raised $ 700 million (about Rs 5,172 crore). This brings the company’s total valuation to $ 5.5 billion.

The company has raised these funds through existing investors of Walmart-led Flipkart.

In October 2020, the number of registered users of PhonePe crossed 25 crores. At the same time, the number of monthly registered users crossed 10 million.

Also, the number of digital transactions was around one billion.

The stock market opened at a record high, the Sensex rose over 300 points, created a new record, the Nifty crossed 13,200.

The country’s stock market again resumed trading on Thursday and the major indices Sensex and Nifty touched new heights. The Sensex rose to above 44,950 and the Nifty also crossed 13,200.

At 12:11 in the day, the Sensex was up 66.24 points at 44,684.28 and the Nifty was trading at 13,138.75 with a strength of 25.00 points.

Out of 50 stocks of Nifty, 36 stocks were trading in green mark and 14 stocks in red mark.

In the morning, big stocks like HDFC Bank, Reliance Industries and Maruti strengthened the market.

The BSE Sensex rose to a high of 44,953.01, rising 176.87 points or 0.40 per cent to 44,794.91 at the time of writing the news.

Similarly, the NSE Nifty was trading at 13,172.80, up 59.05 points or 0.45 percent.

Earlier, the Nifty touched a high of 13,216.60. The biggest gain in the Sensex was two percent in Tata Steel.

Apart from this, Maruti, ONGC, HDFC Bank, Tech Mahindra, L&T, HCL Tech, and SBI were trading with gains. On the other hand, Axis Bank, Infosys, TCS, Bharti Airtel, and M&M declined.