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Flipkart raises $350 million from Google at a valuation of $36 billion

Posted on by darion

According to sources, e-commerce giant Flipkart has raised around $350 million from tech giant Google in a $950 million round at a valuation of $36 billion.

The e-commerce company kicked off this round last December when Walmart, its parent company, contributed $600 million to business line I reported it earlier.

The transaction is subject to regulatory and other customary approvals from both parties, Flipkart said, without providing details of the transaction.

  • Read also: Flipkart’s top executives Prabh Simran Singh and Sankalp Mehrotra will step down

Flipkart’s funding announcement comes as the company prepares to move its headquarters from Singapore to India ahead of a planned domestic IPO. The company has also increased its focus on Shopsy as Meesho looks to raise a $500-650 million round.

“The capital from the seed round will be used to double down on fast trading, in addition to investments in verticals such as travel (Cleartrip) and Shopsy. Investments in new order fulfillment centers will be one of the key areas, say people familiar with these plans, said a source close to the development, requesting anonymity. Flipkart is also making a big push into financial services, especially after separating from PhonePe.

  • Read also: Flipkart introduces new policy regarding seller rate sheet

Google’s collaboration with Flipkart

Google is Flipkart’s current cloud service provider, in addition to its own cloud infrastructure and Microsoft’s Azure platform.

In 2017, Microsoft signed an agreement with Flipkart that made Azure the exclusive public cloud platform for retailers. As part of the transaction, Microsoft invested up to $200 million.

Flipkart has raised $600 million from its parent company Walmart, confirmed the company, which has been part of India’s largest online retailer since 2021, when it closed a $3.6 billion financing round at a $37.6 billion valuation.

  • Read also: “Amazon, Flipkart will join ONDC if it makes business sense.”

Over the last year or so, Flipkart’s offering has expanded to include new categories such as travel (Cleartrip), e-pharmacy (Flipkart Health Plus), home services and others, with the latest products spanning the fast commerce space. The company continues to focus on key categories such as smartphones, large appliances and groceries.

Over the last year or so, Flipkart’s offering has expanded to include new categories such as travel (Cleartrip), e-pharmacy (Flipkart Health Plus), home services and others, with the latest products spanning the fast commerce space. The company continues to focus on key categories such as smartphones, large appliances and groceries.”

Walmart property

Walmart owns 80.5% of Flipkart after early investors like Tiger Global and Accel left, and Flipkart co-founder Binny Bansal also left the company completely by selling his remaining stake to Walmart. Walmart paid $3.5 billion to acquire shares from non-controlling minority shareholders.

Sachin Bansal sold his entire 5 percent stake in Flipkart to Walmart for around $1 billion in 2018, at the time of its acquisition by the US retail giant.

The Canada Pension Plan Investment Board (CPP Investments), the Singapore government’s sovereign wealth fund GIC, Japan’s SoftBank Vision Fund 2 and the Qatar Investment Authority (QIA) are among Flipkart’s other existing investors.