World In the latest funding round, global technology giant Google has proposed to invest about $350 million (about Rs 2,900 crore) to buy a small stake in e-commerce company Flipkart. The 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
“Flipkart today announced the addition of Google as a minority investor as part of a new funding round led by Walmart. The move is subject to regulatory and other procedural approvals from both parties,” Flipkart said in a statement. “Google’s proposed investment and cloud support will help Flipkart further expand its business and modernise its digital infrastructure to serve customers across the country,” Flipkart said.
The transaction could happen at a valuation of $35 billion
However, Flipkart did not give any details of the proposed amount to be invested by Google. But according to sources, this figure could be $ 350 million. A source said that the transaction is expected in the current funding round based on Flipkart’s valuation being around US $ 35 billion. Flipkart’s valuation as of January 31, 2024 was US $ 35 billion based on the equity transaction done by US-based Walmart.
Walmart holds 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 the financial details of the investment commitments in the current funding round, while Flipkart declined to comment on it. Flipkart had reported a net loss of Rs 4,846 crore and consolidated net income of Rs 56,012.8 crore in FY 2022-23. While its expenditure was Rs 60,858 crore.
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