Flipkart has announced a fresh round of funding led by Walmart, with Google joining as a minority stakeholder in the Indian ecommerce giant.
According to a report by Moneycontrol, Flipkart raised $950 million in the latest round, with Google pitching in $350 million in Flipkart and taking its valuation to $36 billion. The round was initiated in December last year with Walmart investing $600 million.
With the investment, Flipkart aims to ramp up its quick commerce offerings along with key segments of Cleartrip and Shopsy.
“Google’s proposed investment and its Cloud collaboration will help Flipkart expand its business and advance the modernisation of its digital infrastructure to serve customers across the country,” Flipkart said in a statement.
Flipkart declined to confirm the investment amount on queries sent by YourStory.
The transaction is subject to receipt of regulatory and other customary approvals by both parties.
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Flipkart has been proving a strong bet for Walmart as the segment produced impressive advertising earnings and also pulled global sales in the February to April 2024 quarter.
Advertising stands as a crucial revenue stream for ecommerce entities, enabling them to seize attention, refine customer targeting, and achieve impressive conversion rates. The practice is only getting better with more AI integration and better analytics.
In its most recent earnings report, Walmart, holding an 85% stake in Flipkart, revealed a 27% growth in its advertising division for the quarter, driven primarily by Flipkart and Walmex. International sales also grew 10.7% year-on-year to $29.4 billion in the quarter.
Flipkart also appointed Prathyusha Agarwal as Vice President of its value commerce platform Shopsy, people aware of the matter told Yourstory. This reshuffling at the top tier comes as Flipkart shifts its focus on public listing plans. Earlier this month, Flipkart also appointed Anuj Rathi as CEO at Cleartrip.
The company was also planning to shift its domicile from Singapore to India ahead of IPO talks, as per ET, although people in the know reportedly told the publication that Flipkart isn’t considering an IPO in 2024.
Edited by Kanishk Singh
