Wal-Mart received a surprise worth $ 10,000 million after purchasing Flipkart.

The Flipkart Board of Directors has recently authorized PhonePe Pvt Ltd. to be a new entity and explore raising $ 1 billion from outside investors by valuing up to $ 10,000 million as people are familiar with this.

When Walmart Inc. paid $ 16 billion to control the pioneer e-commerce Flipkart Online Services Pvt of India last year, the American retail giant has a slightly noticeable digital payment subsidiary as part of the deal. agreed The business is now one of the country's top startups, which is a surprising benefit for Walmart due to the largest acquisition.

The Flipkart Board of Directors has just authorized PhonePe Pvt Ltd. to be a new entity and explore the $ 1 billion fund raised by external investors by valuing up to $ 10,000 million as people are familiar with this matter without asking for a name because Private discussions. Funding may be closed in the next few months, although negotiations are not yet finalized and the conditions are still changing. Units will be independent from different investor base. Although Flipkart, who owns Walmart, will still be shareholders of Walmart and Flipkart, do not reply to emails that search for comments.

PhonePe - which means "phone" in Hindi and pronounced "Pay phone bills" - has grown to be one of India's leading digital payment companies. The volume and value of transactions of the company has increased four times over the past year, as consumers in the country use technology to transfer digital money to businesses and each other. PhonePe is gaining interest from Paytm, a leader. In the field and supported by Warren Buffett

PhonePe is a "bad asset" Edward Yruma, an analyst from KeyBanc Capital Market, wrote in a recent research journal. He estimates that the business may be worth 14 billion dollars to 15 billion dollars, separate from the Flipkart e-commerce business.

Beginning in December 2015, three friends from Flipkart left the area. Within a year, Flipkart founder Binny Bansal and Sachin Bansal decided to buy PhonePe by realizing that solving the payment friction problem would make consumers buy products online easier. Less than a year later, the Indian government has made unprecedented moves to ban large banknotes to reduce corruption and increase digital transactions with "Demon Creation". Paytm PhonePe and other experienced services will only flourish. flourishing

Cheap smartphones and discounted wireless data plans bring millions of Indians online in the past year since promoting the entire industry. In June, PhonePe app had 290 million transactions with a total value of $ 85 billion, compared to 71 million transactions at $ 22 billion in the previous year.

The service is driven by a wide range of services, including movie ticket funds and airline reservations. Earlier this year, it began to use Bollywood stars Aamir Khan in advertising.

"Worldwide, FinTech, a private company, is hardly reaching the PhonePe level on both sides of the network very quickly," said Sameer Nigam, co-founder and CEO of PhonePe, in a statement pointing to 150 million customers and more 5 million merchants "That's why investors are interested"

Wal-Mart has been discussing for several months whether to raise funds for internal payment businesses or to separate operations so that funds can be raised from outside. After plowing nearly $ 300 million in PhonePe, US retailers choose to continue using the course. Alibaba Group Holdings Limited has made similar decisions when separated from Alipay business, which helps to grow by allowing to work with a wide range of stores.

Wal-Mart is still struggling, whether it is a strategic investor or a financial acquaintance. While strategic investors should be better for growth, Wal-Mart's top executives worry that such supporters often need more voting rights. Walmart wants to use lessons from PhonePe to perform other tasks. worldwide

There has not been a change in future roles for the external investors of Flipkart. Tiger Global Management and Tencent Holdings Ltd. each hold a position of director and shareholding ratio of about 5%, while Walmart holds approximately 80%. Interested in a variety of companies before any agreement can be concluded.

The new fundraising aims to help PhonePe grow. The company plans to delve into the important lands of the country where competitors are not expanding with the goal of generating profits.

The market has many potentials. Credit Suisse Group AG said that digital payments in India are expected to reach 1 trillion dollars by 2023 from about 200 billion dollars, now in addition to PhonePe and Paytm, Google Pay, Amazon Pay and services. WhatsApp payments will soon be open for customers. They benefit from India's comprehensive payment interface, which is the core technology that includes national banks and 140 digital payment companies.