Google to invest nearly $350 million in Flipkart

Walmart is expected to have invested $600 mn in the India-based online retailer
Google to invest nearly $350 million in Flipkart

NEW DELHI : In the latest round of funding, Walmart-owned ecommerce platform Flipkart has raised $350 million from Google. This is part of the $1 billion funding round led by Walmart. According to reports, Walmart is likely to have invested $600 million in the India-based online retailer.

In a statement issued by Flipkart on Friday, it said that as part of the latest funding round led by Walmart, it will be adding Google as a minority investor, subject to receipt of regulatory and other customary approvals by both parties.

“Google’s proposed investment and its cloud collaboration will help Flipkart expand its business and advance the modernization of its digital infrastructure to serve customers across the country,” added the press statement.

Though Bengaluru-headquartered e-retailer did not divulge the amount of investment Google is likely to bring in, multiple reports and sources pegged the US-based tech giant’s investment at $350 million. Walmart had in December 2023 invested $600 million in Flipkart. When TNIE contacted the spokespersons of Flipkart and Google, they declined to share any other details of the proposed transaction. Flipkart spokesperson said they have no more information to share at the time.

After the latest funding rounds by Walmart and Google, Flipkart’s valuation is likely to be around $35-36 billion. This means Google would be picking up around 1% in the e-commerce firm. US-based retail giant Walmart, which picked up a majority stake in Flipkart in 2018, currently holds 80-85% stake in the latter, according to multiple startup funding tracker websites.

Walmart had acquired 77% in Flipkart in a $16-billion deal that was completed in 2018. Subsequently, it bought stakes from other early investors such as Binny Bansal, Tiger Global and Accel.

Google last year had promised to invest $10 billion in India’s efforts towards digitization. The US-based tech giant had invested $4.5 billion in Reliance Jio platform in 2020. Apart from these, Google has invested in a clutch of Indian start-ups such as ShareChat, Verse Innovation, Glance and DailyHunt.

Flipkart operates in India’s e-commerce space, which is largely dominated by Amazon.

It reported Rs 15,044 crore in revenue and a loss of Rs 4,026 crore in FY23.

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The New Indian Express