Flipkart raises $350 mn from Google at $36 bn valuation

E-commerce giant Flipkart has raised around $350 million from tech giant Google in its $950 million round, at a valuation of $36 billion, according to sources.

The e-commerce major had kicked off this round in December last year when Walmart, its parent company, had infused $600 million, businessline had reported earlier.

The deal is subject to receipt of regulatory and other customary approvals by both parties, said Flipkart without providing details of the deal.

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Flipkart’s funding announcement comes at a time when the company is preparing to shift its domicile back to India from Singapore ahead of a planned domestic IPO. The company has also increased its focus on Shopsy as Meesho is looking to raise a $500-650 million round.

“Capital from the primary round will be used to double down on quick commerce apart from investing in verticals like travel (Cleartrip) and Shopsy. Investments in new fulfilment centres would be one of the key areas, people aware of the plans said,” a source close to the development said, requesting anonymity. Flipkart is also taking a big bet on financial services, especially after its separation from PhonePe.

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Google’s association with Flipkart

Google is Flipkart’s existing cloud service provider, in addition to its in-house cloud infrastructure and Microsoft’s Azure.

In 2017, Microsoft signed an agreement with Flipkart to make Azure the etailer’s exclusive public cloud platform. Microsoft even invested $200 million as part of the deal.

Flipkart has raised $600 million from its parent company Walmart, confirmed the company, which has been a part for India’s largest online retailer since 2021 when it closed a $3.6 billion funding round at a valuation of $37.6 billion.

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Over the last year or so, Flipkart has expanded in new categories such as travel (Cleartrip), epharmacy (Flipkart Health Plus), at-home services and others, with the latest being in the quick-commerce space. The company continues to focus on core categories like smartphones, large appliances, as well as grocery.

Over the last year or so, Flipkart has expanded in new categories such as travel (Cleartrip), epharmacy (Flipkart Health Plus), at-home services, and others, with the latest being in the quick-commerce space. The company continues to focus on core categories like smartphones, large appliances, as well as grocery.”

Walmart’s ownership

Walmart owns 80.5 per cent in Flipkart following the exits of early investors like Tiger Global and Accel, with Flipkart co-founder Binny Bansal also fully exiting the firm by selling his remaining shares to Walmart. Walmart paid $3.5 billion to acquire stakes from non-controlling minority shareholders.

Sachin Bansal divested his entire 5 per cent holding in Flipkart to Walmart for about $1 billion in 2018 at the time of its acquisition by the US retail giant.

Canada Pension Plan Investment Board (CPP Investments), the Singapore government’s sovereign wealth fund GIC, Japan’s SoftBank Vision Fund 2, and Qatar Investment Authority (QIA) are among Flipkart’s other existing investors.