Bengaluru: Flipkart, on Friday, said that it will be adding Alphabet Inc’s Google as a minority investor, as part of the latest funding round led by the e-commerce player’s majority stakeholder Walmart.
While Flipkart, in its official statement, did not provide details about the quantum of Google’s investment, highly-placed sources told DH that it is around $350 million. The latest funding round aims to raise $1 billion.
"About $600 million has been pumped in by Walmart itself," one of the sources said. Following this latest funding round, kicked off by Walmart in 2023, Flipkart is valued at over $36 billion, according to data tallied by DH.
"Google’s proposed investment and its cloud collaboration will help Flipkart expand its business and advance the modernisation of its digital infrastructure to serve customers across the country," the company said.
Flipkart did not share any further details tied to the intended purpose of the fund raising exercise, or a timeline, stating that the investment is subject to receipt of regulatory and other customary approvals by both parties.
This latest round of funding has been announced days before the e-comm major is slated to launch its own quick commerce service in select locations across India, details of which were reported by DH earlier this year in March.
Funds raised in the exercise are likely to further solidify Flipkart's position in the Indian e-commerce market, where it commands a leading 48% share, according to wealth management firm Bernstein.
US retail giant Walmart had acquired a 77 per cent controlling stake in Flipkart in a 2018 deal valued at $16 billion and currently stands as the e-commerce player's biggest shareholder with an over 80 per cent stake.
The Bengaluru-headquartered online retailer competes with the likes of Amazon.com, Reliance Retail and SoftBank-backed Meesho in India's e-commerce market, which is estimated to be worth $133 billion by next year, per Bernstein.
Internet giant Google had in 2020 announced an investment of approximately $10 billion in India's digital landscape over a 5-7 year timeframe.
Published 24 May 2024, 13:20 IST