Google Joins The Club: Invests In Flipkart, Reportedly Boosting E-Commerce Giant's Valuation to $37B

Author: Shivani Kumaresan | May 24, 2024 01:00pm

Alphabet Inc’s (NASDAQ:GOOGL) (NASDAQ:GOOG) Google has invested in Flipkart, the Indian e-commerce firm backed by Walmart Inc (NYSE:WMT). The latest funding round is led by Walmart.

Google’s proposed investment and its Cloud collaboration will help Flipkart expand its business and advance the modernization of its digital infrastructure to serve customers across the country.

The inclusion of Google as a minority investor is pending regulatory approvals.

Flipkart consists of group companies, including Flipkart, Myntra, Flipkart Wholesale, Flipkart Health+, and Cleartrip.

The tech giant is set to acquire a minority stake valued at $350 million, bringing Flipkart’s valuation to $37 billion, reported Reuters.

Walmart is Flipkart’s largest shareholder. In December 2023, a Flipkart spokesperson confirmed that Walmart planned to invest $600 million as part of a $1 billion funding round.

Also Read: Google Accelerates India Manufacturing Plans, Chooses Tamil Nadu: Report

Speculations about Flipkart’s IPO have been ongoing since Walmart’s investment in the company, which competes with Amazon.com (NASDAQ:AMZN) in India.

Recently, Walmart executives mentioned they are exploring the right timing for Flipkart’s initial public offering, the report mentioned.

Alphabet stock has gained more than 45% in the last 12 months. Investors can gain exposure to the stock via the Communication Services Select Sector SPDR Fund (NYSE:XLC) and Vanguard Communication Services ETF (NYSE:VOX).

Price Action: GOOGL shares are trading higher by 0.89% at $175.09 at the last check Friday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Photo by Rubaitul Azad on Unsplash.

Posted In: AMZN GOOG GOOGL VOX WMT XLC