Sundar Pichai-led Google invests $350 million in Flipkart at a $36 billion valuation: Report

Sundar Pichai-led tech giant Google has invested an undisclosed amount in Flipkart, an e-commerce major that also competes with Amazon in the Indian market.

While the company didn't disclose the investment size or the valuation, media reports said that Google has invested $350 million at a valuation of $35-36 billion.

The investment was part of a $950 million funding round, which was initiated by parent company Walmart with an investment of $600 million. 

Currently, Walmart reportedly holds an 85% stake in Flipkart, with the remaining shares held by a few minority investors, including Tencent.

Flipkart confirms Google as a minority investor

Flipkart has confirmed that it will be adding Google as a minority investor, subject to receipt of regulatory and other customary approvals by both parties. 

The e-commerce company said Google's investment and cloud collaborations will help it expand its business and modernize its digital infrastructure to serve customers across the country.

Flipkart's market presence

Flipkart, which currently holds approximately 48% of the Indian e-commerce market, continues to strengthen its position against competitors such as Amazon, Reliance Retail, and Meesho.

The company, which also owns the fashion e-commerce platform Myntra, serves millions of consumers, particularly in smaller cities and towns.

It's worth noting that the funding comes more than a month after Flipkart dropped plans to purchase a stake in quick commerce unicorn Zepto. Following this, another report claimed that the e-commerce major will launch its own quick commerce business in July this year.

Google's attempt in the Indian e-commerce space

Google's $350 million investment in Flipkart is part of its broader strategy to strengthen its presence in India, a key overseas market.

The company plans to invest $10 billion in Indian businesses, having already invested $4.5 billion in Jio Platforms and $1 billion in Airtel.

The investment also highlights the tech giant's commitment to the Indian market and its interest in the growing e-commerce sector.

Google has previously attempted to enter the Indian e-commerce space with its app Areo, which did not gain much traction. By backing Flipkart, Google aligns itself with a major player in the Indian market, leveraging its cloud services to compete with Amazon's AWS.