Google Funds USD 350 Million in Flipkart By CIOTechOutlook Team

Google Funds USD 350 Million in Flipkart

CIOTechOutlook Team | Saturday, 25 May 2024, 05:17 IST

Google, a leading US-based technology firm, is funding almost $350 million in Walmart-owned e-commerce firm Flipkart for a minority share, as per sources. The speculation is important for the $1 billion financing round began by Flipkart in 2023.

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

The financing will help the firm as it is looking at a valuation of roughly $60 billion at the hour of its initial public offering (Initial public offering), presently anticipated 2025-26 rather than this year, as indicated by individuals acquainted with the matter. The firm should think about posting in India and different geologies, including the US.

The most recent funding is probably going to esteem the Bengaluru-based firm at a 5-10 percent premium to its past valuation of $33 billion, according to sources. The new valuation might cross $36 billion. Flipkart's valuation had been acclimated to $33 billion after fintech firm PhonePe was isolated from the gathering in December 2022.

“Google did the deal as Flipkart is leading in the e-commerce sector. The company plans to deploy the capital to expand its infrastructure and the seller support ecosystem and the latest technologies such as artificial intelligence (AI) and generative AI,” said a person familiar with the matter.