Google becomes minority shareholder in Walmart-owned Amazon competitor Flipkart as it progresses investment plans in India.
Google is to buy a minority stake worth $350 million in Indian e-commerce company Flipkart, which is majority-owned by Walmart, and is also to supply the firm with cloud services, Flipkart said.
The investment is part of a $1bn funding round the began in 2023 and is led by Walmart, which invested $600m late last year.
The round values Flipkart at around $37bn, according to reported estimates that have not been confirmed by the company.
Microsoft is also a minority investor in Flipkart, which competes with Amazon in India.
Flipkart controls about 48 percent of the e-commerce market in India, according to Bernstein analysts, with other competitors including Reliance Retail and SoftBank-backed Meesho.
The Indian e-commerce market is set to be worth some $133bn by next year, Bernstein said.
Walmart took over Flipkart as its majority investor in a $16bn deal in May 2018.
Google in 2020 unveiled plans to invest $10bn in Indian businesses and has since made significant investments in telecoms operators Jio Platforms and Airtel.
The Android developer said last year it would begin production of its Pixel 8 smartphones in India.
More recent reports said the company has formed a deal with Taiwanese contract manufacturer Foxconn to manufacture the handsets in the southern Indian state of Tamil Nadu.
This Cyber News was published on www.silicon.co.uk. Publication date: Mon, 27 May 2024 13:43:04 +0000