Google invests in Flipkart: Google invests $350 million in Flipkart in exchange for minority stake

Mumbai: Google is learned to have invested around $350 million in Flipkart as part of the e-commerce company’s nearly $1 billion funding round led by parent company Walmart. Flipkart did not comment on the funding details, but sources told TOI that the tech giant had infused around $350 million into Flipkart in exchange for a minority stake. Sources say that with Google’s backing, the investment round has been closed, pushing Flipkart’s valuation to over $35 billion. Walmart infused around $600 million into Flipkart in a funding round in December last year. Flipkart’s last major funding round was in 2021, when the company raised $3.6 billion from investors in a round co-led by Walmart at a valuation of $37.6 billion. The company’s valuation is understood to have been revised to $33 billion following the spin-off of fintech PhonePe from the group in 2022. Flipkart said the investment is subject to regulatory approvals. “Google’s proposed investment and cloud collaboration will help Flipkart expand its business and accelerate digital infrastructure modernization to serve customers across the country,” the company said in a statement. Flipkart has partnered with Google Cloud since 2022. Flipkart — which competes with players like Amazon and SoftBank-backed Meesho to serve customers who are increasingly opting for digital solutions — is leveraging Google’s cloud stack to expand its technology capabilities and reach more users . The new funding from Google likely highlights a deeper collaboration with Flipkart in the cloud infrastructure space, but Google may also consider expanding the partnership to other areas in the future, said Satish Meena, advisor at Datum Intelligence. “The financing shows how the lines between the technology and B2C industries are blurring. Technology is becoming the backbone of many industries, and the big tech players have a large war chest to exploit. They are implementing it not only to develop capabilities but also to secure customers by investing in key players across sectors,” said Shravan Shetty, CEO, Primus Partners. Google rival Microsoft also invested in Flipkart in 2017 in a $1.4 billion funding round along with other investors such as Tencent. As of September 2023, Microsoft held a tiny 1.2% stake in the company, according to data from Tracxn. Google increases investments in India. Google’s funding will also come in handy for Flipkart as it looks to enter new spaces like fast commerce, a sector currently dominated by Zomato’s Blinkit, Swiggy Instamart and Zepto.