PhonePe Funding Results Into Flipkart's ESOP Buyback of $700 MIllion: Report

According to a report by known media house, Flipkart is likely to go for a $700 million employee stock buyback. In this round, PhonePe is expected to raise $1.5-2 billion and the round will be led by Walmart.

The report further explains that after this buyback, PhonePe will have a different shareholding structure and Flipkart's valuation will go up from $37.6 billion to $33 billion.

At a $12 billion valuation for the PhonePe transaction, the employee group will see liquidation of around $700 million, taking the total round size to well over $1.5-2 billion, including the secondary share sale. Employee group shareholders are likely to sell their shares to Walmart as investing in PhonePe in a new round would also incur a significant tax payout for paper money gains in PhonePe as opposed to a cash payout…," an anonymous source confirmed it to the media house.

And this is not it, along with Walmart, General Atlantic may also invest $250-300 million in PhonePe.