Tech giant Google is investing nearly $350 million in Walmart-owned e-commerce firm Flipkart for a minority stake, sources say. This investment is part of Flipkart’s $1 billion funding round initiated in 2023.
“As part of the latest funding round led by Walmart, Flipkart today (Friday) announced that it will be adding Google as a minority investor, subject to receipt of regulatory and other customary approvals by both parties,” Flipkart stated.
The funding will aid Flipkart as it aims for a valuation of approximately $60 billion at the time of its initial public offering (IPO), now planned for 2025-26 instead of this year. The firm is considering listing in India and other geographies, including the US.
Sources suggest that the latest financing could value the Bengaluru-based firm at a 5-10 percent premium to its previous valuation of $33 billion, potentially pushing the new valuation over $36 billion. Flipkart’s valuation was adjusted to $33 billion after the fintech firm PhonePe was separated from the group in December 2022.
“Google invested because Flipkart is leading in the e-commerce sector. The company plans to use the capital to expand its infrastructure and seller support ecosystem and to invest in the latest technologies like artificial intelligence (AI) and generative AI,” said a person familiar with the matter.
Flipkart had earlier raised nearly $600 million from its parent company Walmart. As part of the deal, Google will provide its Cloud services to Flipkart. This collaboration will help modernize Flipkart’s digital infrastructure to better serve customers across India.
This fundraise will give Flipkart enough resources to compete with Amazon, Reliance JioMart, and Tata Digital. It will also help the company reach the next 200 million customers in the country, particularly in Tier-II and -III cities and rural areas, according to people familiar with the company’s strategy.
This is another significant fundraise for Flipkart since 2021, when the Flipkart Group (including PhonePe) raised $3.6 billion.