Google plans to invest in Indian digital commerce company Flipkart.
The move will make Google a minority investor in Flipkart’s latest funding round, which is led by Walmart, Flipkart said in a Friday (May 24) press release.
The proposed investment is subject to regulatory and other customary approvals, according to the release.
“Google’s proposed investment and its cloud collaboration will help Flipkart expand its business and advance the modernization of its digital infrastructure to serve customers across the country,” Flipkart said in the release.
The Flipkart Group includes several companies that enable businesses to participate in digital commerce in India, according to the release. The companies include eCommerce platform Flipkart, fashion destination Myntra, B2B marketplace Flipkart Wholesale, health and pharmacy platform Flipkart Health+ and travel platform Cleartrip.
The Flipkart marketplace includes more than 500 million registered users, 1.4 million sellers and 150 million products across 80 categories, the release said.
The announcement of Google’s proposed investment in Flipkart comes about 10 months after Walmart paid $1.4 billion for a larger stake in the Indian eCommerce firm, making that purchase from the investment management group Tiger Global.
A letter to investors issued at the time valued Flipkart at $35 billion.
With that purchase and Walmart’s acquisition of venture capital firm Accel’s 1% stake, Walmart boosted its share of Flipkart to 77%.
A spokesperson for Walmart told PYMNTS at the time of these acquisitions in July: “We remain confident in the future of Flipkart and are even more positive about the opportunity in India today than when we first invested. We continue to be impressed with Flipkart’s progress and remain focused on building a healthy, sustainable and profitable business for the long term, ensuring Flipkart continues to grow in an emerging and dynamic market.”
PYMNTS Intelligence’s “2023 Global Digital Shopping Index: India Edition,” found that millennial, bridge millennial and Generation Z shoppers have been India’s early adopters of digital-first shopping experiences.
These shoppers use 17 digital shopping and payment features, on average, compared to the averages of 15 in the United States and 12 in the United Kingdom.
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