New Delhi: In a significant move, Google, the giant IT company, has invested $350 million (approximately Rs 2,907 crore) in Flipkart, a Walmart group company. This strategic investment comes as part of Flipkart’s recent funding round, which began in 2023. Alongside the financial infusion, Google and Flipkart have also formed a partnership.
Flipkart’s Competitive Landscape
Flipkart, headquartered in Bengaluru, is a dominant player in the Indian e-commerce market. With a valuation of $36 billion following this investment, it leads the industry, serving millions of consumers across smaller cities and towns. The company commands approximately 48% of the Indian e-commerce market, according to Bernstein. Its competitors include Reliance Retail, Amazon, SoftBank-backed Meesho, and several emerging quick-commerce apps.
Walmart’s Continued Support
Walmart, which holds an 85% stake in Flipkart, has been a consistent supporter. Last year, it invested $600 million in the company during a funding campaign. Now, with Google’s backing, Flipkart’s valuation is expected to reach $35-36 billion, up from $33 billion after its separation from PhonePe Group.
Google’s Strategic Investment and Cloud Collaboration
Google’s investment not only provides capital but also includes cloud offerings for Flipkart. The collaboration aims to enhance Flipkart’s business growth and modernize its digital infrastructure, enabling better service to customers across India.
Upcoming Initiatives
Insiders reveal that Flipkart plans to allocate a significant portion of the fund to its quick commerce business, set to launch in July. As the e-commerce landscape evolves, Flipkart’s strategic moves position it to compete effectively against rivals like Amazon, Meesho, Jio Mart, and Tata Digital.
