Google is investing nearly $350 million in Flipkart, an Indian e-commerce startup owned by Walmart. This investment makes Google the latest high-profile name to support Flipkart. As part of the deal, Google will also provide Flipkart with cloud offerings. Flipkart recently announced a funding round of nearly $1 billion, with Walmart leading the round by investing $600 million. Microsoft is another investor in Flipkart.
With this new investment, Flipkart is now valued at $36 billion. The company is the leader in the Indian e-commerce market, serving hundreds of millions of consumers in smaller cities and towns. According to Bernstein, Flipkart commands about 48% of the Indian e-commerce market. Flipkart faces competition from Reliance Retail, Amazon, SoftBank-backed Meesho, and various quick-commerce apps.
Reliance Retail, owned by Asia’s richest man, Mukesh Ambani, operates the largest retail chain in India and is also venturing into e-commerce. Last year, Reliance Retail received a $2 billion investment from QIA, ADIA, and KKR, valuing the company at $100 billion.
India’s e-commerce market is projected to be worth $133 billion by next year, according to Bernstein. The market is witnessing the emergence of challengers across different segments, including quick commerce, social commerce, and vertical commerce. While Amazon and Flipkart are the leaders, category winners like Blinkit (quick commerce), Meesho (tier 2+ markets), and Nykaa (vertical commerce) are also scaling up.
Google sees India as a crucial overseas market, reaching over half a billion people in the country. In 2020, Google announced plans to invest $10 billion in Indian businesses. So far, the company has invested $4.5 billion in the telecom operator Jio Platforms and another $1 billion in Airtel.