Google will invest nearly $350 million in Flipkart

NEW DELHI: In its latest round of funding, Walmart-owned e-commerce platform Flipkart has raised $350 million from Google. This is part of a $1 billion financing round led by Walmart. Walmart has reportedly invested $600 million in the Indian online retailer.

A statement issued by Flipkart on Friday said it would add Google as a minority investor in its latest financing round led by Walmart, subject to regulatory and other customary approvals from both parties.

“Google’s proposed investment and cloud collaboration will help Flipkart expand its business and accelerate digital infrastructure modernization to serve customers across the country,” she added in a press statement.

While the Bengaluru-based online retailer has not disclosed the amount of investment Google is likely to make, multiple reports and sources have pegged the US tech giant’s investment at $350 million. Walmart invested $600 million in Flipkart in December 2023. When TNIE contacted Flipkart and Google spokespersons, they refused to provide any other details of the proposed deal. A Flipkart spokesperson said there is no further information to share at this time.

After recent funding rounds from Walmart and Google, Flipkart’s valuation is likely to be around $35-36 billion. This means that Google would gain about 10% in the e-commerce industry. US retail giant Walmart, which acquired a majority stake in Flipkart in 2018, currently holds 80-85% stake in the latter, according to multiple startup funding tracking websites.

Walmart acquired a 77% stake in Flipkart in a $16 billion deal that closed in 2018. It then bought shares from other early investors such as Binny Bansal, Tiger Global and Accel.

Last year, Google promised to invest $10 billion in India’s digitization efforts. The US tech giant invested $4.5 billion in the Reliance Jio platform in 2020. Apart from this, Google has invested in a number of Indian startups such as ShareChat, Verse Innovation, Glance and DailyHunt.

Flipkart operates in the Indian e-commerce space, which is largely dominated by Amazon.

It reported revenues of Rs 15,044 crore and a loss of Rs 4,026 crore in FY23.

Flipkart is valued at $35-36 billion

After recent funding rounds from Walmart and Google, Flipkart’s valuation is likely to be $35-36 billion. This means that Google would gain about 10% in the e-commerce industry. American retail giant Walmart, which acquired a majority stake in Flipkart in 2018, currently holds 80-85% stake in the latter.