Google joins the club: invests in Flipkart, reportedly raising the e-commerce giant’s valuation to $37 billion – Alphabet (NASDAQ:GOOGL), Walmart (NYSE:WMT)

Alphabet Inc (NASDAQ:GOOGL) (NASDAQ:GOOG) Google invested in FlipkartIndian e-commerce company backed by Walmart Inc (NYSE:WMT). The latest round of financing is led by Walmart.

Google’s proposed investment and cloud collaboration will help Flipkart expand its business and accelerate the modernization of its digital infrastructure to serve customers across the country.

Google’s inclusion as a minority investor is pending regulatory approval.

Flipkart consists of group companies including Flipkart, Myntra, Flipkart Wholesale, Flipkart Health+ and Cleartrip.

According to Reuters, the technology giant intends to acquire a minority stake worth $350 million, which will increase Flipkart’s valuation to $37 billion.

Walmart is the largest shareholder in Flipkart. In December 2023, a Flipkart spokesperson confirmed that Walmart plans to invest $600 million as part of a $1 billion funding round.

Read also: Google accelerates manufacturing plans in India, chooses Tamil Nadu: report

Speculations about Flipkart’s IPO have been going on ever since Walmart invested in a rival company Amazon.com (NASDAQ:AMZN) in India.

Recently, Walmart executives mentioned that they are examining the right timing for Flipkart’s IPO, as mentioned in the report.

Related: Why Flipkart’s valuation dropped by $5 billion according to Walmart’s latest calculations

Alphabet shares have gained more than 45% in the last 12 months. Investors can gain exposure to stocks through Communication Services Select sector SPDR Fund (NYSE:XLC) i Vanguard communications services ETF (NYSE: VOX).

Reduction: GOOGL stock is trading up 0.89% at $175.09 on Friday.

Reservation: This content was created in part using AI tools and reviewed and published by Benzinga editors.

Read on: Google’s $1.1 billion support for Finnish AI data center: details

Photo by Rubaitul Azad on Unsplash.