PhonePe, a leading digital payments platform in India, has confirmed that it is relocating its headquarters from Singapore to India. The move follows speculation that the fintech giant planned to relocate its headquarters to India, amid increasing government support for the tech industry and the impact of the pandemic.
PhonePe has not provided any further details about its relocation, including the specific location of its new headquarters in India. However, reports suggest that the company, which is owned by Flipkart, plans to go public on Indian stock exchanges in the future.
“We will list here while relocating our holding company to India. It has already received approval from our board. It’s only a matter of time now,” said Sameer Nigam, the CEO, in a previous interview with MoneyControl.
PhonePe’s parent company, Phonepe Private Limited, was established in Mumbai in December 2012, according to Zauba Corp. The company’s CEO is based in Bangalore, and PhonePe has offices in Mysuru, Bengaluru, Hyderabad, and New Delhi.
Why the sudden change?
The move comes amid growing concerns about the dominance of PhonePe and Google Pay in the UPI payments business in India. PhonePe and Google Pay currently control around 50% of the country’s UPI payments business. The Indian government has expressed concerns about the market dominance of foreign-based companies in the UPI payments business. It is expected to discuss the issue during the upcoming Parliament’s Monsoon Session.
PhonePe completed transactions worth INR 5.01 Lakh Cr in June this year. While UPI registered 586 Cr transactions totalling INR 10.14 Lakh Cr. Google Pay took second place with transactions worth INR 3.55 Lakh Cr.
In 2020, PhonePe was separated from Flipkart but remains a wholly-owned subsidiary of Flipkart Internet, the Singapore-based division of the global e-commerce giant. While Flipkart owns the majority of PhonePe, it is unlikely to relocate its own headquarters from Singapore.
Recently, the company received a funding boost of close to $297 million from its parent company in Singapore. Two resolutions were approved by Phone Private Limited to distribute 2.5 million equity shares to PhonePe Private Ltd Singapore, raising INR 2,275 crore.
PhonePe claims to have over 385 million registered users and 30 million+ merchant outlets in India. Competing with rivals Paytm and Google Pay. Its move back to India is expected to have a positive impact on the Indian tech industry. It can provide a boost for homegrown companies and contributing to the country’s economic growth.