Walmart may have to pay $1 bn tax on PhonePe shift to India: Reports

PhonePe shareholders like Walmart and others may have to pay around $1 billion in taxes after the digital payments company shifted its headquarters to Bengaluru, reports said.

According to reports, citing sources aware of developments, the tax is the result of PhonePe’s relocation and it’s rising valuation, after Walmart took majority share in it.

The reports citing sources also said that PhonePe is raising funds at a $12 billion pre-money valuation from General Atlantic, Qatar Investment Authority, and others, resulting in the heavy tax.

Investors like Tiger Global Management have now purchased shares of PhonePe in India at the new price, leading to tax implications of around Rs 800 crore for existing shareholders, the reports said.