Google’s entry in Flipkart…going to buy stake for Rs 2,900 crore

World’s leading technology company Google has proposed to invest about $ 350 million (about Rs 2,900 crore) to buy a small stake in e-commerce company Flipkart in the latest funding round. Walmart Group company gave this information on Friday. According to sources, Flipkart is raising one billion dollars in the current round of fundraising and has received a commitment of $600 million from its parent company and American retail giant Walmart.

Flipkart will get this benefit from Google

“As part of its new funding round led by Walmart, Flipkart announced the addition of Google as a minority investor. The move will be subject to regulatory and other due diligence approvals from both parties,” Flipkart said in a statement. ” “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,” Flipkart said.

Transaction can happen at $35 billion valuation

However, Flipkart did not give any details of the amount proposed to be invested by Google. But according to sources, this figure could be as high as $350 million. The transaction in the current funding round is expected to be based on Flipkart’s valuation of around US$35 billion, a source said. Flipkart was valued at US$35 billion as of January 31, 2024, based on the equity transaction done by US-based Walmart.

Walmart has 85% stake in Flipkart

Walmart had increased its stake in Flipkart by 10 percent to about 85 percent by paying $ 3.5 billion in the financial year 2023-24. Google and Walmart did not immediately respond to emails sent on financial details of investment commitments in the current funding round, while Flipkart declined to comment. Flipkart had reported a net loss of Rs 4,846 crore and a consolidated net income of Rs 56,012.8 crore in FY 2022-23. Whereas its expenditure was Rs 60,858 crore.