Google has invested $350 million in Flipkart, valuing the e-commerce giant at $36 billion, according to a source familiar with the matter. Despite the significant investment, Google will not gain a seat on Flipkart’s board.
Flipkart confirmed the investment but did not disclose the specific amount from Google. “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 regulatory and customary approvals,” the company stated on Friday.
Walmart-owned Flipkart emphasized that Google’s investment and cloud collaboration would help expand its business and modernize its digital infrastructure.
This marks Flipkart’s second partnership with a major tech company. In 2017, it teamed up with Microsoft to use Azure as its exclusive public cloud platform. Microsoft highlighted that Flipkart would leverage Azure’s AI, machine learning, and analytics capabilities to enhance merchandising, advertising, marketing, and customer service.
Reports suggest Flipkart is considering relocating its domicile to India from Singapore to facilitate a public market listing. Walmart’s CEO Kathryn J. McLay recently noted that the company is exploring the timing of a potential IPO. She highlighted that Flipkart’s business has grown, with its subsidiary Myntra achieving EBITDA positivity for the past two quarters and an increase in premiumization lifting Flipkart’s profile. EBITDA stands for earnings before interest, tax, depreciation, and amortization.
Google’s investment aligns with Flipkart’s broader ambitions to expand its quick commerce segment, aiming to stay competitive by offering faster delivery options. Historically, Flipkart has not been a fast-delivery company, but it has recently expanded same-day delivery to 20 cities in India. Previous attempts at quick commerce, such as Nearby in 2015 and Flipkart Quick in 2020, were discontinued.
Flipkart’s slower delivery system results from its focus on larger warehouses, unlike Amazon’s fragmented warehouse strategy, which enables faster deliveries within 24 hours.
In FY23, Flipkart reported revenue of ₹55,823 crore, up from ₹50,992 crore the previous year, but its losses increased to ₹4,897 crore from ₹3,413 crore. The company has also been cutting costs, including laying off about 5% of its workforce, or nearly 1,000 employees, in January as part of its annual performance review cycle.
Founded in 2007 by Binny Bansal and Sachin Bansal, Flipkart began as an online bookstore and now claims over 500 million users, offering more than 150 million products across 80+ categories. Its subsidiaries include Flipkart Wholesale, Flipkart Health+, and Cleartrip.