Walmart gets $1 bln tax bill for shifting PhonePe headquarters to India
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,…
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)