Flipkart Invests Rs 670 Cr to Develop Its Own Digital Payments Business




21 July 2016, India :

Just yesterday Flipkart came up with it’s own way to counter Amazon Prime by launching ‘F Assured’ and today Flipkart is taking control of its cash transaction business.

Flipkart is soon going to implement it’s digital wallet- PhonePe and raised Rs 670 crore for it. Flipkart recently acquired PhonePe, a Bangalore based mobile payments company. It was Co-founded by ex-Flipkart employees Sameer Nigam and Rahul Chari. Anyone holding an active bank account can easily perform instant transactions by simply using their mobile phone.

“Designed as an omni-channel product, PhonePe will be a container for multiple payment solutions which includes a semi-closed loop wallet and “have a tie up with a large bank for UPI,” Sameer Nigam, founder of PhonePe, told ET.

“This is a long-term strategic bet for us, and we believe PhonePe could become as big as Flipkart one day,” said CEO of Flipkart Binny Bansal.

“PhonePe will focus on building highly India-centric digital payment solutions. We have decided to build a new brand because PhonePe is addressing different consumer needs and the brand should reflect the same,” he added.


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Initially, PhonePe will be available for customers on Myntra, recently acquired by Flipkart and for users of its logistic arm — eKart. Gradually, the company plans to roll out the platform to other digital platforms. Like PayTm, Freecharge and other online payment services at present, PhonePe will eventually enter offline payment segment as well enabling local stores, kirana shops with UPI.

Flipkart is an e-commerce company founded in 2007 by Sachin Bansal and Binny Bansal. The company is registered in Singapore, but has its headquarters in Bangalore, Karnataka, India.


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