Chennai: Flipkart, India’s homegrown e-commerce marketplace, has announced a partial spin-off of PhonePe.

According to a company statement, Flipkart’s Board determined that this was the right time to partially spin-off PhonePe so it can access dedicated capital to fund its long-term ambitions over the next three to four years.

The partial spin-off also provides PhonePe an opportunity to constitute a new Board of Directors focused on supporting its development, and to create a tailor-made equity incentive or ESOP program for its employees.

In this financing round, PhonePe is raising USD $700Mn in primary capital at a post-money valuation of USD $5.5Bn from existing Flipkart investors led by Walmart.