Alphabet’s Google is set to acquire a minority stake worth $350 million in Flipkart, the Indian e-commerce giant backed by Walmart.
This investment values Flipkart at $37 billion. The news marks a significant development in the ongoing competition between Flipkart and Amazon in the Indian market.
Google and Flipkart have yet to confirm the exact value of the investment, but Flipkart did announce that Google will join as an investor in its latest funding round. This round is led by Walmart, Flipkart’s largest shareholder.
Google’s investment is pending regulatory approvals and will position the tech giant as a minority investor in the company.
“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,” Flipkart said in a statement.
This collaboration is expected to leverage Google’s cloud technologies to enhance Flipkart’s digital infrastructure, aiming to improve customer service and operational efficiency across India.
In December 2023, a Flipkart spokesperson confirmed that Walmart was set to infuse $600 million into the company as part of a $1 billion funding round.
Flipkart’s growth and substantial investments have spurred speculation about a potential initial public offering (IPO). Walmart executives have indicated they are ‘looking and exploring’ for the optimal timing for Flipkart’s IPO.
Flipkart, based in Bengaluru, has been a formidable competitor to Amazon in the Indian e-commerce market. India represents a critical battleground for e-commerce companies due to its vast population and rapidly growing internet user base. Both companies have invested heavily in logistics, technology, and marketing to capture a larger share of this lucrative market.
The partnership with Google is poised to give Flipkart a technological edge, particularly in cloud computing and artificial intelligence. These capabilities are crucial for managing the complex logistics and vast product catalogs typical of large e-commerce platforms.
By integrating Google Cloud services, Flipkart aims to enhance its data analytics, improve supply chain management, and deliver customers a more personalized shopping experience.
