Google to invest $350 million in Flipkart

Guwahati: US company Google is investing almost $350 million in Flipkart, joining other well-known backers of the Walmart-owned Indian e-commerce company.

According to a short statement from the Bengaluru-based startup on Friday, the creator of Android will also supply cloud services to Flipkart as a part of the agreement. The investment from Google is a component of an almost $1 billion funding cycle that Flipkart began in 2023. Late last year, Walmart took the lead in the round by investing $600 million. Flipkart also has investments from Microsoft.

Flipkart dominates the e-commerce sector in India, catering to millions of consumers in smaller urban areas and towns. The startup, which also operates the fashion e-commerce company Myntra, holds around 48% of the e-commerce market in India.

Flipkart competes with Reliance Retail, Amazon, Meesho which is backed by SoftBank, and a growing number of quick-commerce apps. Mukesh Ambani, the wealthiest man in Asia, manages Reliance Retail, which runs India's biggest retail chain and is now making efforts to establish an e-commerce presence. QIA, ADIA, and KKR invested almost $2 billion in Reliance Retail last year, resulting in a valuation of $100 billion.

According to Bernstein, India's e-commerce market is predicted to reach a value of $133 billion by the upcoming year.

There is a rise in competition within the Indian e-commerce sector from various challengers specializing in quick/social/vertical commerce. However, Amazon and Flipkart continue to dominate the market because of their expertise in mobiles, consumer electronics, and appliances. Nevertheless, India is expected to have specific category winners such as Blinkit, Meesho, and Nykaa as they expand.

Google, targeting over 500 million individuals in India, considers the South Asian country as an important international market. The company announced intentions to put $10 billion into Indian enterprises in 2020. It has also put $4.5 billion into Jio Platforms and an additional $1 billion into Airtel.

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