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Google to acquire minority stake in Flipkart during new funding round

Flipkart highlighted that Google's investment, along with a cloud collaboration, will support the expansion of its business and the modernisation of its digital infrastructure, enhancing services for customers across India.

Edited By: Nitin Kumar @Niitz1 New Delhi Updated on: May 24, 2024 19:06 IST
Google
Image Source : FILE PHOTO Google to acquire a minority stake in Flipkart during the new funding round.

Google has proposed to invest in e-commerce giant Flipkart, aiming to acquire a minority stake as part of Flipkart's latest funding round led by Walmart, the company announced on Friday. Flipkart stated that the investment by Google is subject to regulatory and customary approvals from both parties. The exact amount of Google's investment and the total funds being raised have not been disclosed.

"As part of the latest funding round led by Walmart, Flipkart today announced that it will be adding Google as a minority investor, subject to receipt of regulatory and other customary approvals by both parties," Flipkart said in a statement.

Flipkart highlighted that Google's proposed investment, along with its Cloud collaboration, will facilitate the expansion of Flipkart's business and bolster the modernization of its digital infrastructure to cater to customers nationwide.

Financial details and background

While Flipkart confirmed raising fresh investment of $350 million, the exact amount of Google's proposed investment remains undisclosed. In December 2023, it was revealed that Walmart, Flipkart's parent company, would infuse approximately $600 million as part of a $1 billion capital infusion into Flipkart.

Previous acquisitions and resignations

Walmart had increased its stake in Flipkart in September 2023 by paying $3.5 billion to acquire shares from non-controlling interest holders. This move followed Walmart's $16-billion acquisition of Flipkart in August 2018. In January 2024, Flipkart's co-founder Binny Bansal resigned from the company's board, marking a significant transition for the e-commerce giant co-founded by Sachin Bansal and Binny Bansal in 2007.

Also read | Indian forex reserve reaches all-time high with $648.7 billion for the week ending May 17: RBI

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