Walmart-backed PhonePe set to Acquire WealthDesk and OpenQ

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Walmart-backed PhonePe set to Acquire WealthDesk and OpenQ
18 May 2022
5 min read

News Synopsis

PhonePe, a subsidiary of Walmart Inc.'s Flipkart group, is expanding its wealth management and distribution capabilities through acquisitions. Two sources familiar with the talks told that, the company is planning to buy two wealth management firms for a total enterprise value of $75 million as it seeks to broaden its offerings for customers of its payments services

On the condition of anonymity, people in the know stated that PhonePe will purchase investing technology firms WealthDesk for around $50 million and OpenQ for $25 million. At present, PhonePe runs a mutual fund distribution license.

PhonePe applied for a mutual fund licence with the Securities and Exchange Board of India (SEBI) in December of last year, which was denied. Sameer Nigam, the company's creator and chief executive, previously told the media that financial services will account for roughly 40 percent to 45 percent of PhonePe's entire revenue. In the first half of 2022, the company also planned to enter the merchant lending business.

A PhonePe spokesperson said in a statement, "PhonePe is acquiring WealthDesk. The founder and the entire team will be working as a part of the PhonePe group and both the platforms will remain independent. WealthDesk will continue to remain an open platform for all players, and the founder Ujjwal Jain will continue defining the vision for his company."

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