P

PhonePe

India's leading digital payments platform

Fintech & PaymentsBangalore, India subsidiary Founded 2015

At a Glance

Legal name
PhonePe Private Limited
Registry number
U74900KA2015FTC082423 · verify
Jurisdiction
India (current, post-2022 reverse-flip from Singapore)
Ownership
subsidiary
Employees
1000+
Revenue (est.)
$500M-$1B
Headquarters
Office-2, Floor-6, Wing A, B & C, Embassy Tech Village, Outer Ring Road, Devarabeesanahalli, Bangalore 560103, Karnataka, India
Snapshot Last updated 24 April 2026

PhonePe is India's largest UPI payments platform by transaction volume, processing roughly half of all UPI payments in the country.

Founded2015
Employees1000+
Revenue (est.)$500M-$1B
OwnershipSubsidiary

PhonePe is India's largest UPI payments platform by transaction volume, processing roughly half of all UPI payments in the country. Founded in 2015 by Sameer Nigam, Rahul Chari, and Burzin Engineer, PhonePe was acquired by Flipkart in 2016 for a reported US$20 million and operated as a Flipkart subsidiary until Walmart's 2018 acquisition of Flipkart brought PhonePe under Walmart's umbrella.

In December 2022 PhonePe was formally demerged from the Flipkart group and restructured as a standalone Walmart portfolio company, with its parent entity redomiciled from Singapore back to India. PhonePe Private Limited (India) became the sole operating and holding entity. Walmart retains majority control; General Atlantic, Ribbit Capital, Tiger Global, and Tencent are minority shareholders.

PhonePe operates UPI payments, merchant acceptance, mutual-fund distribution (as a SEBI-registered distributor), insurance broking (via Pincode insurance brokerage licences), gold and jewellery commerce, and the PhonePe Switch mini-app platform. It holds an RBI Payment Aggregator licence in-principle and is reportedly preparing for an Indian IPO on NSE/BSE. The 2022-2023 redomicile is one of the largest and most-studied reverse flips in Indian corporate history.

  1. 1

    Singapore Pte Ltd

    PhonePe's 2022-2023 redomicile from Singapore to India is the defining reverse-flip case study and the template that Razorpay, Groww, KreditBee, and others have followed. The structural details matter.

  2. 2

    Acquisition story

    **The Singapore origin under Flipkart.** When Flipkart acquired PhonePe in 2016, PhonePe's ultimate parent became PhonePe Pte. Ltd. in Singapore, sitting under Flipkart's own Singapore parent. This structure persisted through Walmart's 2018 acquisition of Flipkart. The Singapore parent held the consolidated PhonePe cap table, the IP, and the strategic-investor subscriptions; the Indian opco held the RBI licences and operated the payments business.

  3. 3

    Acquisition story

    **The demerger and redomicile.** In December 2022 Walmart formally separated PhonePe from Flipkart, and PhonePe Pte. Ltd. (Singapore) was merged into PhonePe Private Limited (India). The transaction used the Companies Act Section 234 cross-border merger framework, which requires NCLT approval on the Indian side and regulatory clearance on the Singapore side (ACRA). The tax cost - paid by PhonePe's shareholders rather than the company itself - was reportedly around US$900 million, driven by Indian capital-gains tax on the deemed share-transfer when shareholders exchanged Singapore shares for Indian shares. This is the single largest documented reverse-flip tax bill in Indian history.

  4. 4

    Capital markets path

    **Why it was worth US$900M.** Three forces justified the cost. (1) SEBI's listing framework effectively requires an Indian-domiciled parent for a main-board IPO. Staying in Singapore would have limited PhonePe to an SGX or overseas listing where demand for Indian internet stocks is far thinner than the NSE/BSE retail book. (2) The Indian UPI ecosystem and RBI licensing framework make the Indian opco the regulatory centre of gravity anyway - the Singapore parent was a cap-table shell, not an operating entity. (3) Strategic optionality - as a purely Indian entity, PhonePe can execute M&A, issue employee ESOPs to Indian-resident employees without FEMA complications, and list in India when market conditions are right.

Build Your Own

Replicate PhonePe's structure in 4 steps

The formation playbook, distilled from how this company was actually set up.

1

Incorporate an Indian Private Limited Company under the

Incorporate an Indian Private Limited Company under the Companies Act 2013 via MCA SPICe+. Two directors (one Indian-resident), two shareholders, Indian registered office.

2

Estonia e-Residency play

Accept foreign VC and strategic investment directly into the Indian Pvt Ltd via CCPS under the automatic FDI route. File FC-GPR with RBI within 30 days; file FLA annually.

3

German entity type

For regulated activities (payment aggregation, UPI TPAP, mutual-fund distribution, insurance broking), apply to the relevant regulator (RBI, SEBI, IRDAI). All licences are Indian-incorporation-only.

4

Acquisition story

To migrate an existing foreign parent into India, use the Companies Act Section 234 cross-border merger route. Engage NCLT-experienced counsel. Budget 12-18 months, NCLT approval on the Indian side, ACRA / equivalent consent on the foreign side, RBI acquiescence on the share-swap, and tax on the deemed transfer.

Frequently Asked Questions

Why did PhonePe move from Singapore to India in 2022-2023?

SEBI listing rules effectively require an Indian-domiciled parent for an Indian main-board IPO. PhonePe's regulatory centre of gravity (RBI Payment Aggregator licensing, UPI TPAP participation) was already Indian. The Singapore parent was a cap-table shell. Redomiciling consolidated the structure ahead of a planned Indian IPO on NSE/BSE.

How much did PhonePe's redomicile cost?

The tax cost, paid by PhonePe's shareholders (not the company itself), was reportedly around US$900 million in Indian capital-gains tax on the deemed share-transfer. This was the largest documented reverse-flip tax bill in Indian history. It was justified by the strategic value of Indian-domiciled IPO readiness.

Is PhonePe owned by Walmart or by Flipkart?

PhonePe was demerged from Flipkart in December 2022 and is now a direct Walmart-controlled portfolio company. Flipkart's shareholders received PhonePe shares pro-rata in the demerger, but the two companies are now legally and operationally separate, though both remain under Walmart's majority ownership.

Can PhonePe now IPO in India?

Yes. Post-redomicile, PhonePe Private Limited is the Indian-domiciled parent and can convert to a Public Limited Company and file a DRHP with SEBI whenever management and Walmart are ready. PhonePe has publicly indicated IPO preparation; exact timing depends on market conditions, profitability trajectory, and regulatory approvals.

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