New Delhi: Google has invested around $350 million in Flipkart, joining the list of big names supporting the Walmart-owned Indian e-commerce giant. Along with the investment, Google will also provide Flipkart with cloud services, according to a statement from the Bengaluru-based company on Friday. This funding is part of a larger $1 billion round that Flipkart started in 2023, with Walmart already contributing $600 million last year. Microsoft is also an investor in Flipkart.
Flipkart, now valued at $36 billion, is a leading player in India’s e-commerce market, serving millions of customers, especially in smaller cities and towns. The company, which also owns the fashion e-commerce site Myntra, controls about 48% of the Indian e-commerce market, according to Bernstein.
Flipkart competes with Reliance Retail, Amazon, SoftBank-backed Meesho, and several quick-commerce apps. Reliance Retail, led by Mukesh Ambani, the richest man in Asia, operates the largest retail chain in India and is increasingly moving into e-commerce. Last year, Reliance Retail was valued at $100 billion after a $2 billion investment from QIA, ADIA, and KKR.
India’s e-commerce market is expected to be worth $133 billion by next year, according to Bernstein. The market is seeing new competitors in quick, social, and specialized commerce. While Amazon and Flipkart are still the leaders, especially in categories like mobile phones, electronics, and appliances, India is likely to see other companies like Blinkit (quick commerce), Meesho (tier 2+ markets), and Nykaa (specialized commerce) grow as well, according to Bernstein analysts.
Google, which reaches more than half a billion people in India, considers the country a key international market. In 2020, Google announced plans to invest $10 billion in Indian businesses. Since then, it has invested $4.5 billion in Jio Platforms and another $1 billion in Airtel.
