Google to invest $350m in India's Flipkart, valuing co at $37b
Sunday, 26 May 2024
BENGALURU, May 25 (Reuters): Alphabet's Google will pick up a minority stake worth $350 million in Walmart-backed Flipkart, valuing the Indian e-commerce firm at $37 billion, a source with direct knowledge of the matter told Reuters.
Google and Flipkart were not immediately available to confirm the value of the investment.
The tech giant will join in as an investor in the latest funding round for the Bengaluru-based company, Flipkart said in a statement.
The round will be led by Walmart, Flipkart's biggest shareholder and will make Google a minority investor, subject to approvals.
"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 in a statement.
In December 2023, a Flipkart spokesperson confirmed that Walmart was set to infuse $600 mln in the company as part of a $1 billion round.
Flipkart has been a source of IPO speculation since Walmart took over the company, which competes with Amazon.com in India.
Earlier this month, executives at the US retail giant said they are "looking and exploring" for the right time for Flipkart's initial public offering.
Meanwhile, Alphabet's Google is planning to make its Pixel smartphone in India's southern state of Tamil Nadu and has tied up with Taiwan's Foxconn, two sources with direct knowledge said on Thursday.
"It will be making the latest models of its smartphones in the state... at the existing Foxconn facility (in Tamil Nadu)," one of the sources said on condition of anonymity as they are not authorized to talk to the media.
Foxconn already assembles Apple's iPhones at a facility near Chennai in Tamil Nadu.
Big global manufacturers are looking to diversify their supply chain beyond China amid geopolitical tensions between Beijing and Washington and are considering India as an option.
"The investment in Tamil Nadu is separate from the reported tie-up between Dixon and Google (to make smartphones in India)," the source said, adding the decision came about after the state's officials met with Google executives recently.