According to sources, Alphabet's Google is purchasing a minority stake in Walmart-owned Flipkart for almost $350 million (more than Rs 2900 crore). The investment is a part of the $1 billion funding round that Flipkart initiated in 2023. The Walmart-backed Flipkart did not reveal Google's investment amount or the company's valuation.
Flipkart is raising USD 1 billion during an ongoing funding round and has received the commitment of USD 600 million infusion from its parent firm and US retail giant Walmart, according to sources.
''As part of the latest funding round led by Walmart, Flipkart today announced that it will be adding Google as a minority investor, subject to receipt of regulatory and other customary approvals by both parties,'' Flipkart said in a statement.
The e-commerce firm, however, neither disclosed the amount proposed to be invested by Google nor the details of the fund being raised by the firm.
''Google's proposed investment and its cloud collaboration will help Flipkart expand its business and advance the modernization of its digital infrastructure to serve customers across the country,'' Flipkart said.
A source said that the transaction during the ongoing round is expected to take place at a valuation of around USD 35 billion.
Emails seeking comments from Google and Walmart on financial details of the investment commitments during the ongoing funding round elicited no immediate response, while Flipkart declined to comment on the same.
Flipkart was valued at USD 35 billion as of January 31, 2024 based on equity transactions carried out by its US-based parent firm Walmart.
The US retail giant in FY24 increased its shareholding by 10 per cent to approximately 85 per cent by paying USD 3.5 billion, taking the enterprise valuation of Flipkart to USD 35 billion.
With inputs from PTI
