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Google To Invest $350 Million in India’s Flipkart
May 24, 2024
In a strategic move poised to shake up the Indian e-commerce landscape, Alphabet’s Google is set to acquire a minority stake in Flipkart, the Walmart-backed retail giant.
The $350 million investment values Flipkart at a staggering $37 billion, a source with direct knowledge of the investment told Reuters, underscoring the platform’s significant growth and potential within the rapidly expanding Indian market. This move also allows Google to pick up a minority stake in Flipkart.
This strategic investment by Google is not merely financial. It includes a crucial Cloud collaboration that is set to bolster Flipkart’s digital infrastructure. This partnership aims to enhance Flipkart’s capabilities in serving customers across India by modernizing its technology and expanding its business operations. The synergy between Google’s technological prowess and Flipkart’s market presence could herald a new era of innovation in India’s e-commerce sector.
While neither Google nor Flipkart immediately confirmed the exact figures, the investment was announced as part of the latest funding round for the Bengaluru-based e-commerce company. Walmart, Flipkart’s largest shareholder, is leading this funding round, which also marks Google’s entry as a minority investor. The infusion of funds is subject to necessary approvals but is expected to proceed smoothly.
The investment comes on the heels of a substantial $600 million commitment from Walmart in December 2023, part of a larger $1 billion funding round. This significant capital injection highlights Walmart’s continuous support and belief in Flipkart’s potential. Since Walmart’s takeover of Flipkart, there has been persistent speculation about an impending IPO. Earlier this month, Walmart executives hinted that they are actively exploring the optimal timing for Flipkart’s public debut, a move that has been eagerly anticipated by investors and market analysts alike.
Flipkart’s competitive stance against Amazon.com in India makes these developments particularly noteworthy. The fresh capital and enhanced technological collaboration with Google are expected to strengthen Flipkart’s position in the market, allowing it to better compete with its global rival.
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