UPDATE 1-Walmart gets $1 bln tax bill for shifting PhonePe headquarters to India
(Adds details on tax bill, background)BENGALURU, Jan 4 (Reuters) - Walmart Inc and other PhonePe shareholders will have to pay nearly $1 billion in tax after the digital payments company shifted its…
(Adds details on tax bill, background)
BENGALURU, Jan 4 (Reuters) - Walmart Inc and other PhonePe shareholders will have to pay nearly $1 billion in tax after the digital payments company shifted its headquarters to India, Bloomberg News reported on Wednesday, citing people familiar with the matter.
PhonePe is raising funds at a $12 billion pre-money valuation from General Atlantic, Qatar Investment Authority and others, triggering the hefty charge, according to the report.
The fintech firm was last valued at around $5.5 billion in December 2020, based on multiple media reports.
Investors including Tiger Global Management have now purchased shares of PhonePe in India at the new price, leading to tax implications of roughly 80 billion Indian rupees ($966.13 million) for existing shareholders, Bloomberg News reported.
PhonePe, Walmart and Tiger Global did not immediately respond to Reuters requests for comment.
Walmart said last month it had completed the separation of PhonePe from Indian ecommerce giant Flipkart, adding that it would remain a majority stakeholder in both the companies. ($1 = 82.8050 Indian rupees) (Reporting by Nandan Mandayam in Bengaluru; Editing by Shounak Dasgupta)