On Wednesday evening, Walmart declared that it had already remitted the majority of the roughly $1 billion (around Rs. 8,300 crore) in taxes due to the Indian government, following PhonePe – a digital payments firm that Walmart possesses through Flipkart – having its headquarters moved from Singapore to India.
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In 2018, Walmart purchased a majority share of Flipkart, India’s leading e-commerce platform, which gave it control of PhonePe. Last month, Walmart announced that the separation of PhonePe from Flipkart was complete, and that it would continue to have a majority stake in both companies.
Walmart has already given most of the Rs. 7,800 crore billion that was due as a capital gains tax after PhonePe investors shifted their shares in the Singapore entity to the Indian entity due to the domicile change, according to a source who has direct knowledge on the matter, as reported by Reuters.
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Tiger Global, an existing investor in PhonePe, was exempt from having to pay the tax, according to the source.
Walmart did not provide any further information concerning the payment. When contacted by Reuters via email on Thursday, PhonePe did not give an immediate response.
Last year, Moneycontrol reported that PhonePe had secured funding from General Atlantic in a round that valued the fintech firm at approximately $12 billion (roughly Rs. 99,300 crore). This was a considerable increase from its December 2020 valuation of $5.5 billion (roughly Rs. 45,500).
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Bloomberg News reported that Walmart and other PhonePe investors would have to shell out approximately $1 billion (around Rs. 8,300 crore) after the company shifted its headquarters.
In December, it was announced that Flipkart and PhonePe had finalized their split and would both be functioning under Walmart’s ownership.
In a statement, the company announced that Walmart-led existing Flipkart Singapore and PhonePe Singapore shareholders have bought shares in PhonePe India, concluding the process of making PhonePe an India-based company that began earlier this year.