Flipkart said it has added Google as a “minority investor” in the e-commerce platform as part of the latest funding round led by Walmart….reports Asian Lite News
As the Indian e-commerce space heats up with a spurt in the digital economy, Google has invested nearly $350 million in Walmart-owned Flipkart, taking the homegrown company’s valuation at nearly $36 billion.
In a statement, Flipkart said it has added Google as a “minority investor” in the e-commerce platform as part of the latest funding round led by Walmart.
Also Read
The company, however, did not disclose the financial details.
The move, coming at a time when the Indian digital economy is growing at a much faster pace, is subject to receipt of regulatory and other customary approvals by both parties, the homegrown e-commerce firm said in a statement.
“Google’s proposed investment and its Cloud collaboration will help Flipkart expand its business and advance the modernisation of its digital infrastructure to serve customers across the country,” it said.
Established in 2007, Flipkart has enabled millions of sellers, merchants, and small businesses to participate in India’s digital commerce revolution. Currently, it has a registered user base of more than 500 million and the marketplace offers over 150 million products across more than 80 categories.
According to the company, there are over 1.4 million sellers on the platform, including Shopsy sellers.
Earlier this week, the e-commerce platform said it has clocked 1.6 times growth (year-on-year) in its grocery business. The company has launched 16 grocery fulfilment centres across key locations in the country.
Flipkart Grocery offers next-day deliveries in over 200 cities, including tier 2 and beyond towns and cities.
“As we expand our footprint and enhance our service offerings, we remain dedicated to delivering unparalleled convenience to millions of customers across India,” said Hari Kumar G, Vice President, Head of Grocery, Flipkart.
While essential staples such as oil, ghee, atta, tea, coffee, detergents and personal care saw 1.6 times growth, the company said it also witnessed strong growth across essential and non-essential items, with an increase in liquid detergents by 1.8 times, dry fruits by 1.5 times and energy drinks by 1.5 times, among others.
Led by e-grocery, India’s quick commerce market is set to witness 15 times growth by 2025, reaching a market size of nearly $5.5 billion, according to market research firm Redseer.
Flipkart has launched 16 grocery fulfillment centres across key locations in the country which serve 66,000 grocery orders per day.
As the e commerce battle intensifies in India, E-commerce giant Amazon has pumped Rs 1,600 crore into its India arm, Amazon Seller Services, a regulatory filing by the company has shown.
The investment comes as India’s e-commerce growth is expected to reach $200-230 billion by 2030, a steady 20-22 per cent rise.
According to Amazon’s filing in the US, “The Board is hereby accorded for allotment of 1,66,00,00,000 (One hundred sixty six crore) equity shares of Rs 10 each aggregating to Rs 16,60,00,00,000 (One thousand six hundred sixty crore) to the existing shareholders on right basis”.
This is the second time when the e-commerce giant has infused money into Amazon Seller Services this year.
In February, the US-based parent company infused Rs 830 crore into its India entity.
Recently, Walmart invested $600 million into homegrown rival Flipkart.
The e-commerce war in the country has intensified as India, a growing economy, is set to add a new user base of almost 210 million shoppers by 2030 from the current 240 million users.
Most of these new users are expected to be from tier 2 and beyond cities, according to market research firm Redseer.
ALSO READ: Paytm Pushes for a Turnaround
[soliloquy id="151345"]