Flipkart raises $350 million investment from Google

Google has invested about $350 million in Indian e-commerce giant Flipkart, owned by Walmart, as part of the company’s ongoing $1 billion financing round. The move marks Google’s entry as a minority investor.

Flipkart announced Google’s investment on Friday, though the exact amount was not officially disclosed. Sources close to the deal suggest Google’s contribution is around $350 million. This investment is part of a larger $1 billion financing round launched in December 2023, led by Walmart, which previously contributed $600 million. The new investment values ​​Flipkart at $35-36 billion. To date, the funding round has raised approximately $950 million.

The fresh capital infusion from Google is likely to accelerate Flipkart’s expansion into high-speed commerce, enabling it to compete effectively in this dynamic and highly competitive space. “As part of the latest round of financing led by Walmart, Flipkart today announced that it will add Google as a minority investor, subject to regulatory and other customary approvals from both parties,” Flipkart noted.

And if that’s not enough, as part of the investment, Google will also partner with Flipkart to improve its digital infrastructure through cloud services. Google’s cloud platform – aptly named – offers a robust suite of cloud computing services, including data storage, analytics, and machine learning capabilities. By leveraging Google Cloud Platform (GCP), Flipkart can increase its scalability, improve operational efficiency and further personalize the customer experience. For example. GCP data analytics tools can help Flipkart gain deeper insights into customer behavior and preferences. This information can then be used to personalize product recommendations, optimize search results, and ultimately create a more engaging and user-friendly shopping experience.

Flipkart is now a household name, boasting a registered user base of over 500 million and offering an extensive product catalog of over 150 million products in over 80 categories. Thanks to this wide range, shoppers can find everything they need, from electronics and clothing to groceries and household products, all under one virtual roof. In recent years, Flipkart has seen impressive growth in its grocery segment, registering a staggering 1.6x year-on-year growth. As of May 2024, there are 16 fulfillment centers across India with a total area of ​​over 9 lakh square feet. These centers are equipped to handle close to 14 lakh units and fulfill an extraordinary 66,000 grocery orders per day, offering fast deliveries in over 200 cities (including major cities such as Bangalore, Chennai, Kolkata, Mumbai and New Delhi).

According to Bernstein, the company, which also owns e-commerce platform Myntra, controls about 48% of India’s e-commerce market. This strong market presence pits Flipkart against other major players such as Amazon, Reliance Retail and SoftBank-backed Meesho. Talking about the Indian e-commerce market, it is expected to reach USD 133 billion next year, driven by rapid digital adoption and growing consumer demand. This is true even as companies like Flipkart face stiff competition from fast trading platforms and niche platforms like Blinkit, Zepto and Nykaa. The Walmart-owned company also plans to launch a quick commerce service by July, aimed at competing with established players such as Zepto, Blinkit and Swiggy Instamart.