Hogan Lovells advises PhonePe on its separation of ownership from Flipkart in India
The separation of these businesses as distinct entities will allow for the creation of new opportunities for investors to
Hogan Lovells advises PhonePe on its separation of ownership from Flipkart in India
The separation of these businesses as distinct entities will allow for the creation of new opportunities for investors to participate in the Indian tech ecosystem
International law firm Hogan Lovells has advised PhonePe Private Limited, a Singapore-based company, on the separation of ownership of its Indian subsidiary, PhonePe Private Limited, India, from Flipkart Private Limited, an Indian e-commerce company, in India.
PhonePe India is one of India's largest digital payment platforms.
PhonePe India was acquired by Flipkart in 2016. The separation of these businesses as distinct entities will allow for the creation of new opportunities for investors to participate in the Indian tech ecosystem and also help to unlock and maximize enterprise value for shareholders of both companies.
As part of this transaction, existing shareholders of Flipkart and PhonePe, led by Fit Holdings SARL, a subsidiary of Walmart Inc., have acquired shares directly in PhonePe India. After the completion of the transaction, Walmart continues to be the majority stakeholder in both companies.
The Hogan Lovells team was led by Singapore-based partner and Head of Corporate & Finance Asia-Pacific, Stephanie Keen, with support from Sylvia M. Taslim (Counsel, Singapore), Danielle Wu (Counsel, Singapore), and Esther Wong (Associate, Singapore).
Paul Randall (Senior Counsel, London), Fiona Bantock (Partner, London), and Callum Fowers (Senior Associate, London) also assisted on employment matters.
"We are honoured to have had this opportunity to advise on this strategic transaction in India. Our involvement is a testament to the firm's expertise in the digital commerce market in India. We look forward to continuing to support clients in this fast-growing and innovative market," lead partner Stephanie Keen, said.
Hogan Lovells continues to expand its relationship with PhonePe, Flipkart and Walmart in India, having advised Walmart on Walmart's 2018 acquisition of Flipkart, Flipkart's fundraising of US$1.2 billion and US$700 million fundraising for PhonePe, and Flipkart on its 2021 US$3.6 billion funding to accelerate the growth of the consumer internet ecosystem in India