Payments company Oxigen Services will be hiving off its online businesses, which includes its digital wallet, into a separate entity known as Phi Enterprises. The development was first reported by Economic Times. Speaking to MediaNama, Oxigen's deputy managing director Sunil Kulkarni said that the company had planned to de-merge the online business as part of its payments bank licence application. "The infrastructure and financial services business will remain with Oxigen, and the online business - the mobile application and the website where the payments are done , will be hived off," Kulkarni said. He also confirmed that the company is also looking to raise Rs 1,300 crore for the new entity. "The online business require considerable dollars for visibility and branding. So Oxigen's financial services is a profitable entity and you can't use that to fund the online business, which has its separate investors," Kulkarni added. Oxigen's operations Oxigen had earlier informed MediaNama that it has 10 million users in its wallet and online business with the average value of transactions per month being around Rs 450 crore. Oxigen's wallet also has about 1.5 million transactions occurring every month. On the other hand, Oxigen claimed that its offline retail business has 150 million users and the average value of transactions per month is around Rs 1,000 crore. The number of transactions on its offline network is around 50 million. Oxigen has over 200,000 touch points in addition to its banking correspondents in its offline network. Developments in digital payments The digital…
