E-commerce company Flipkart on Friday announced adding Google as a minority investor to its latest funding round led by parent company Walmart. The investment from Google is reported to be around $350 million.
Flipkart in a statement said, “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.”
The company, without disclosing the funding amount in the statement, said Google’s proposed investment and its Cloud collaboration will help expand its business and advance the modernization of its digital infrastructure to serve customers across the country.
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The incoming capital takes the funding round to around $950 million, of which $600 million was invested by its parent company Walmart in December last year.
The investment is expected to fuel the company’s plan to reportedly get into the quick commerce segment currently led by Zomato-owned Blinkit, Zepto, and Swiggy Instamart.
Earlier this week, Flipkart had reported a 1.6X year-on-year growth in its grocery business. The company has been enhancing its grocery supply chain infrastructure with the launch of 16 grocery fulfillment centers. With the combined size of over 9 lakhs sq. ft. and a capacity of close to 14 lakh units, these fulfillment centers serve 66,000 grocery orders per day.
While the company’s valuation with the latest infusion couldn’t be ascertained, it had dropped by $5 billion or around Rs 41,000 crore to $35 billion as of January 2024 vis-a-vis $40 billion in January 2022, according to equity transactions carried out by its US-based parent firm Walmart, PTI had reported in March this year.
Flipkart had attributed the fall to PhonePe demerger from the company.
A report by AllianceBernstein, as reported by PTI, earlier this year had said that Flipkart leads India’s e-commerce market with a 48 per cent share with its user base growing by 21 per cent year-on-year. On the other hand, Meesho grew at 32 per cent and Amazon at 13 per cent user growth.
From: financialexpress
Financial News
