Google is investing $350 million in Indian e-commerce giant Flipkart

Google is investing a significant amount of almost $350 million in Flipkart, the Indian e-commerce powerhouse owned by Walmart.

The move marks Google as the latest major backer of the Bengaluru-based startup. According to Flipkart’s brief statement on Friday, in addition to financial investments, Google will provide cloud services to Flipkart as part of the deal.

This investment by Google is part of a larger funding round initiated by Flipkart in 2023 that aims to raise nearly $1 billion. Walmart is the leader in this round, having already invested $600 million at the end of last year. Microsoft is also one of the significant investors in Flipkart.

With this new investment, Flipkart’s valuation has reached $36 billion. The company dominates the Indian e-commerce market, serving hundreds of millions of consumers, especially in smaller cities. Flipkart also owns Myntra, a leading fashion e-commerce platform, and holds about 48% of the Indian e-commerce market, according to Bernstein.

Flipkart faces competition from several key players, including Reliance Retail, Amazon and SoftBank-backed Meesho, as well as various quick trading apps. Reliance Retail, run by Mukesh Ambani, Asia’s richest man, operates India’s largest retail network and continues to build its own e-commerce presence. Reliance Retail was valued at $100 billion last year after investments of nearly $2 billion by QIA, ADIA and KKR.

According to Bernstein, the Indian e-commerce market is estimated to be worth $133 billion next year. There is a growing number of competitors in the market in various segments such as fast, social and vertical commerce. While Amazon and Flipkart remain dominant due to their strengths in categories such as mobile phones, consumer electronics and home appliances, the Indian e-commerce landscape is expected to see an increase in specialized category winners such as Blinkit (fast trading), Meesho (Tier 2 and above markets). and Nykaa (vertical trading).

Google, which reaches more than half a billion people in India, sees the South Asian country as a key market. The tech giant has announced plans to invest $10 billion in Indian companies in 2020. Google has since invested $4.5 billion in telecom major Jio Platforms and another $1 billion in Airtel, further strengthening its commitment to the Indian market.