Ecommerce

Google invests $350 million in Indian e-commerce giant Flipkart

May 24, 2024 at 5:19:52 PM

TL;DR Google is investing $350 million in Flipkart, becoming the latest high-profile name to back the Walmart-owned Indian e-commerce startup. Google will also provide cloud offerings as part of the deal. The investment is part of a nearly $1 billion funding round led by Walmart. Flipkart, valued at $36 billion, leads the Indian e-commerce market, competing with Reliance Retail, Amazon, and others.

Google invests $350 million in Indian e-commerce giant Flipkart

Google is investing nearly $350 million in Flipkart, joining Walmart and Microsoft as backers of the Indian e-commerce giant. As part of the deal, Google will also provide Flipkart with cloud offerings. This investment is part of a nearly $1 billion funding round initiated by Flipkart in 2023, with Walmart having already invested $600 million.

Flipkart, now valued at $36 billion, leads the Indian e-commerce market, commanding about 48% of the market share. It competes with Reliance Retail, Amazon, SoftBank-backed Meesho, and various quick-commerce apps. Reliance Retail, valued at $100 billion, operates the largest retail chain in India and is expanding its e-commerce presence.

India's e-commerce market is projected to be worth $133 billion by next year. Analysts note that while Amazon and Flipkart lead in categories like mobiles and consumer electronics, India’s market is likely to see category-specific winners like Blinkit, Meesho, and Nykaa.

Google, which reaches over half a billion people in India, views the country as a key market. The company announced plans to invest $10 billion in Indian businesses in 2020, having already invested $4.5 billion in Jio Platforms and $1 billion in Airtel.