There is going to be a big stir in India’s e-commerce sector. The world’s leading tech company, Google, has invested in Walmart-owned Indian e-commerce company Flipkart. Google invested approximately $350 million in the recent funding round by Flipkart to achieve $1 billion. Flipkart started this round in 2023. With this, Google has become a partner of Flipkart. Amazon, Meesho, JioMart, and Tata Digital may face tough competition in the Indian e-commerce sector.
Flipkart Did Not Disclose The Investment Amount
This funding round will help Flipkart increase its valuation. However, Flipkart has not disclosed the amount of Google’s investment or the company’s valuation. The statement said that Google has now joined Flipkart as an investor in the funding round led by Walmart. However, Google’s investment is still awaiting regulatory approval.
Flipkart’s Valuation Will Increase
According to sources, with this funding round, the valuation of the Bengaluru-based e-commerce firm may increase by about 5 to 10 per cent to $ 36 billion. Last time, Flipkart’s valuation was estimated at $33 billion. This reduction in valuation came after the separation of PhonePe. Fintech company PhonePe was removed from Flipkart and made a separate company in December 2022. A knowledgeable person said that Google made this deal because Flipkart is a leading company in the e-commerce sector. The company will use the funding round to expand its infrastructure, seller support ecosystem, and advanced technologies like Artificial Intelligence (AI) and Generative AI.
It Will Help Reach Small Towns and Villages
Under this deal, Google will provide its cloud service to Flipkart, which will help Flipkart expand its business. The company said this will help modernize its digital infrastructure to serve customers nationwide and reach the next 20 crore customers in Tier-2 and 3 cities and rural India.
