After selling its shares, Indian e-commerce behemoth Flipkart no longer has a financial interest in PhonePe. On Friday, both companies announced that they had completed the process of separating PhonePe’s ownership, with shareholders in the Singaporean branches of both companies purchasing shares directly in the Indian subsidiary.

After being purchased by Flipkart in2016, PhonePe is relocating all of its operations to the Indian subcontinent. A person familiar with the situation has revealed that the payments company is in discussions to raise as much as $1.5 billion at a pre-money value of $12 billion, with the intention of using some of the proceeds to buy back some shares from the new shareholders.

Many influential companies and very successful entrepreneurs have gotten their start at The Flipkart Group. Kalyan Krishnamurthy, CEO of Flipkart Group, said in a statement, “We are happy to see PhonePe expand and prosper as a great firm in its own right.” We have full faith that PhonePe will continue to expand, allowing it to fulfil its mission of bringing financial services to millions of Indians. Flipkart is dedicated to its mission of “enabling every Indian’s ambition by creating value via innovation in technology and commerce and by facilitating small companies’ access to pan-India marketplaces.”

It has been confirmed by a second source that Flipkart has no plans to return to the consumer payments sector. PhonePe has stated that it would spin out as its own company before the end of 2020.

In a nutshell, the split will affect how much money can be made by Flipkart. PhonePe, the market leader in mobile payments in India, announced a new fundraising round in late 2020 at a valuation of $5.5 billion. Flipkart Group, at the time, was valued at $37.6 billion when it raised $3.6 billion in July.