As part of the acquisition, GigIndia, which has 1.5 million entrepreneurs and over 100 enterprises as customers, will integrate with PhonePe.
The retailer is focused on ensuring that it is seen as a "good partner" for the country and has attempted to demonstrate its culture to the government.
Aimed at reaching more customers, the Andhra Pradesh State Road Transport Corporation (APSRTC) has introduced digital payment in its cargo services.
One in four Indians now use fintech platform PhonePe, as the company on Friday said that it crossed 350 million registered users.
The company also said it has digitised 25 million small merchants and kirana stores in the country.
He said Indian bankers have been short-sighted on the payments business, leading to unified payments interface (UPI) payments being monopolised by the two major digital wallets.
The company's founders will not be participating in the buyback, while the top leadership can sell up to 10 per cent of their vested stock, it added.
Kenghe highlighted that there is a need for the ecosystem to come together and invest in the infrastructure to ensure its robustness and security.
With over 45 per cent market share, PhonePe's data is representative of the country's digital payment habits, the company said.
Nigam said the five-year old company, which has more than 300 million users, said PhonePe had seen significant growth in its mutual funds and insurance offerings.
Now, with this new ‘direct broking’ licence, PhonePe can distribute products from all insurance companies in India, the company said.