Google will invest $350 million in India’s Flipkart

In a strategic move that is expected to shake up India’s e-commerce landscape, Alphabet-owned Google is set to acquire a minority stake in Flipkart, the Walmart-backed retail giant.

The $350 million investment values ​​Flipkart at a staggering $37 billion, a source with direct knowledge of the investment told Reuters, highlighting the platform’s significant growth and potential in the fast-growing Indian market. The move also enables Google to acquire a minority stake in Flipkart.

This strategic investment by Google is not only financial. It includes key cloud collaborations to strengthen Flipkart’s digital infrastructure. The aim of this partnership is to enhance Flipkart’s ability to serve customers across India by upgrading its technology and expanding its business operations. The synergy between Google’s technological capabilities and Flipkart’s market presence could herald a new era of innovation in the Indian e-commerce sector.

While neither Google nor Flipkart immediately confirmed the exact numbers, the investment was announced as part of the latest round of funding for the Bengaluru-based e-commerce company. Walmart, Flipkart’s largest shareholder, is leading this funding round, which also marks Google’s entry as a minority investor. The injection of funds requires obtaining the necessary approvals, but is expected to go smoothly.

The investment follows Walmart’s significant $600 million commitment in December 2023, part of a larger $1 billion financing round. This significant capital injection highlights Walmart’s continued support and belief in Flipkart’s potential. Since Walmart acquired Flipkart, there has been constant speculation about an upcoming IPO. Earlier this month, Walmart executives signaled that they were actively examining the optimal timing for Flipkart’s public debut, something that investors and market analysts alike have been eagerly awaiting.

Flipkart’s competitive stance against Amazon.com in India makes these changes particularly noteworthy. The fresh capital and enhanced technology partnership with Google are expected to strengthen Flipkart’s position in the market, allowing it to better compete with its global rival.